Horngren's Financial & Managerial Accounting
5th Edition
ISBN: 9780133851281
Author: Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.27E
Computing asset turnover ratio
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:
| Net sales | $440,000 | |
| Dec.31, 2016 | Dec. 31, 2015 | |
| Cash | $ 26,000 | $ 28,000 |
| 56,000 | 58,000 | |
| Merchandise Inventory | 79,000 | 76,000 |
| Prepaid Expenses | 8,000 | 14,000 |
| Property, plant, and equipment, net | 180,000 | 11,000 |
Compute the asset turnover ratio for 2016.
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Photo Pro
Photo reported the following figures on its December 31,
2024,
income statement and balance sheet:
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(Click
the icon to view the figures.)
Compute the asset turnover ratio for
2024.
Round to two decimal places.
Net sales
$545,000
Dec. 31, 2024
Dec. 31, 2023
Cash
$22,000
$28,000
Accounts Receivable
57,000
56,000
Merchandise Inventory
76,000
75,000
Prepaid Expenses
6,000
11,000
Property, Plant, and Equipment, net
180,000
20,000
Computing Asset Ratios
The following information relates to Mazy's Inc.
$ millions
Total Assets
Revenue
Net Income
Fiscal Year 2015
$47,325
$62,282
$2,461
Fiscal Year 2014
46,926
Mazy's fiscal years for 2015 and 2014 end on January 30, 2016, and January 31, 2015, respectively.
Note: Carry all decimals in calculations; enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.
a. Compute the asset turnover ratio for fiscal year 2015.
Answer
b. Compute the return on assets ratio for fiscal year 2015.
Answer
In its 2017 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $7,837 million, end-of-the-year total assets of $7,726 million, total sales of $7,890 million, and net income of $887 million.
Compute Campbell’s asset turnover. (Round answer to 4 decimal places, e.g. 4.8726.)
Asset turnover
enter asset turnover in times rounded to 4 decimal places
times
LINK TO TEXT
Compute Campbell’s profit margin on sales. (Round answer to 2 decimal places, e.g. 4.87%.)
Profit margin on sales
enter profit margin on sales in percentages rounded to 4 decimal places
%
LINK TO TEXT
Compute Campbell’s return on assets using (1) asset turnover and profit margin and (2) net income. (Round answers to 2 decimal places, e.g. 4.87%.)
Return on assets
(1)
Asset…
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting
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