Business, 05.05.2020 09:41 AndyCrasher

Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were $80 million at the beginning of the year and $88 million at the end of the year. Calculate Peyton's return on assets, profit margin, and asset turnover ratios. (Round your final answers to 1 decimal place. Enter your answers in millions. (i. e., $5,500,000 should be entered as 5.5).)

Answers: 2

Show answers

Answers

Answer from: zamorano75341

Peyton's return on assets, profit margin, and asset turnover ratios are:

Return on Assets 159.52%. Profit Margin 11.75%. Asset Turnover Ratio 1.36 times.

a. Return on assets

Average total assets= (Beginning assets + Ending assets)/2

Average total assets= ($80 million + $88 million)/2

Average total assets= $168 /2

Average total assets= $84 million

Return on Assets = Annual Net Income ÷ Average Total assets

Return on Assets = $13.4 million ÷ $84 million

Return on Assets = $159.52 million

b. Profit Margin

Profit Margin = Net Income ÷ Net Sales

Profit Margin= $13.4 million ÷ $114 million

Profit Margin= 11.75%

c. Assets turnover ratio

Average total assets =(Beginning assets + Ending assets)/2

Average total assets= ($80 million + $88 million) /2

Average total assets= $168 /2

Average total assets= $84 million

Asset Turnover Ratio = Net Sales ÷ Average Total assets

Asset Turnover Ratio= $114 million ÷ $84 million

Asset Turnover Ratio= 1.36 times

Learn more here:link

Answer from: dacey9300

Return on Assets = 159.52%

Profit Margin = 11.75%

Asset Turnover Ratio = 1.36 times

Explanation:

The computation of return on assets, profit margin, and asset turnover ratios is shown below:-

a. Return on assets

Average Total Assets = Assets in the beginning + Assets at the end ÷ 2

= ($80 million + $88 million) ÷ 2

= $168 ÷ 2

= $84 million

Return on Assets = Annual Net Income ÷ Average Total assets

= $13.4 million ÷ $84 million

= $159.52 million

b. Profit Margin

Profit Margin = Net Income ÷ Net Sales

= $13.4 million ÷ $114 million

= 11.75%

c. Assets turnover ratio

Average Total Assets = Assets in the beginning + Assets at the end ÷ 2

= ($80 million + $88 million) ÷ 2

= $168 ÷ 2

= $84 million

Asset Turnover Ratio = Net Sales ÷ Average Total assets

= $114 million ÷ $84 million

= 1.36 times

Answer from: Quest

there is no following so id just amuse false

Answer from: Quest

Iwould say the answer is 4.

Another question on Business

Business, 21.06.2019 23:30

Afreelanceâ€‹ singer-songwriter is planning the restoration of a recently purchased civilâ€‹ war-era farmhouse. while he professes an enjoymentâ€‹ of, and talent in the constructionâ€‹ trades, the theory of comparative advantage implies that a. the value of what he importsâ€‹ (in thisâ€‹ case, professional contractorâ€‹ services) must equal the value of what he exportsâ€‹ (songs). b. he should concentrate on the restoration work since hisâ€‹ out-of-pocket costs will be much lower than if he hires professionals. c. â€‹self-sufficiency isâ€‹ advantageous, hence he should split his time between music and construction. d. the income lost while away from music will likely exceed the savings realized by doing the workâ€‹ himself, thus, he should hire professionals to do the restoration work. e. he ought to do as much of the work himself as possible since importsâ€‹ (in thisâ€‹ case, professional contractorâ€‹ services) should always be restricted to those things that cannot be done internall

Answers: 2

Answer

Business, 22.06.2019 08:20

Which change is illustrated by the shift taking place on this graph? a decrease in supply an increase in supply o an increase in demand o a decrease in demand

Answers: 3

Answer

Business, 22.06.2019 19:00

Which of the following would cause a shift to the right of the supply curve for gasoline? i. a large increase in the price of public transportation. ii. a large decrease in the price of automobiles. iii. a large reduction in the costs of producing gasoline

Answers: 1

Answer

Business, 22.06.2019 19:00

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.

Answers: 2

Answer

You know the right answer?

Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were...

Questions