Brad's BBQ reported sales of $660,000 and net income of $41,000. Brad's also reported ending total assets of $491,000 and beginning total assets of $384,000. Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Brad's BBQ.

Brad's BBQ reported sales of $660,000 and net income of $41,000. Brad's also reported ending total assets of $491,000 and beginning total assets of $384,000. Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Brad's BBQ.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 5MAD: Analyze Home Depot The Home Depot (HD) reported the following data (in millions) in its recent...

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Question

i need help

Asset Turnover
Choose Numerator
Choose Denominator
Asset Turnover
ets
+ [Average total assets
turnover
$
660,000 +
$
437,500
1.5 times
II
II

Brad's BBQ reported sales of $660,000 and net income of $41,000. Brad's also reported ending total assets of $491,000 and
beginning total assets of $384,000.
Required:
Calculate the return on assets, the profit margin, and the asset turnover ratio for Brad's BBQ.
Return on Assets
Choose Numerator
Choose Denominator
Return on Assets
Net income
+ [Average total assets
Return on assets
$
41,000 +
$
437,500 =
9.4%
Profit Margin
Choose Numerator
Choose Denominator
Profit Margin
%3D
Net income
+ Sales
Profit margin
$
4,100,000 +
660,000 =
621.2%
II
%24

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