14. Financial Statement Analysis

Ratios: Profit Margin x Asset Turnover = Return On Assets

14. Financial Statement Analysis

# Ratios: Profit Margin x Asset Turnover = Return On Assets

1

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## Ratios: Profit Margin x Asset Turnover = Return On Assets

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Problem

ProblemXYZ Company had a profit margin of 8.8% and total asset turnover of 0.77. What is XYZ's Return on Assets?

A

6.78%

B

0.07%

C

11.43%

D

9.57%

3

Problem

ProblemA company had a profit margin of 6.1%. The company's net sales were $3,600,000 and Cost of Goods Sold was $600,000. If total assets were $3,450,000 at the beginning of the year and $4,210,000 at the end of the year, what is the company's return on assets?

A

4.8%

B

5.2%

C

5.7%

D

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