The 2017 annual report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 0000 December 31, 2016 Total assets $930.9 $920.1 Total liabilities 197.1 208.6 Net sales 515.7 517.4 Net income 80.7 67.2 Instructions Compute the following ratios for Tootsie Roll for 2017. a.    Asset turnover. b.    Return on assets. c.    Profit margin on sales. d.    How can the asset turnover be used to compute the return on assets?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The 2017 annual report of Tootsie Roll Industries contains the following information.

(in millions) December 31, 2017 0000 December 31, 2016
Total assets
$930.9
$920.1
Total liabilities
197.1
208.6
Net sales
515.7
517.4
Net income
80.7
67.2

Instructions

Compute the following ratios for Tootsie Roll for 2017.

a.    Asset turnover.

b.    Return on assets.

c.    Profit margin on sales.

d.    How can the asset turnover be used to compute the return on assets?

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