Income Ratios and Asset Turnover Zara, Spain luxury fashion house that manufactures clothing, fragrance, and fashion accessories, had net income of £210 million on sales of £1,495 million in 2012. (£ is the British currency, the pound.)

The company’s operating statistics for 2012 included the following:

Operating return on sales 14.85%

Operating return on average total assets 19.61%

Total asset turnover 1.50

Return on shareholders’ equity 31.29%

1. Compute the following 2012 amounts for Zara:

a. Operating income and Average total assets.

b. Average shareholders’ equity

c

explanation:

well obviously you must be dumb if you dont noe dat

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answertrue;