Pharoah Company reports the following information (in millions) during a recent year: net sales, $13,875.0; net earnings, $693.8; totalassets, ending, $5,600.0; and total assets, beginning, $5,500.0.(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% or 6.2.)1.Return on assets2.Asset turnover7.9%2.5times3.Profit margin19.9%

Step 1: Given, Net sales = $13,875.0,Net earnings = $693.8,Total assets(ending) = $5,600.0, and…

Answered: Pharoah Company reports the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9BE

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Sunland Company reports the following information (in millions) during a recent year: net sales, $11.257.9; net earnings, $327.9. total assets. ending. $5,560.0; and total assets, beginning, $5,370.0. (a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% and 6.2.) 2 3. Return on assets Asset turnover Profit margin times
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