The average total assets of Party Favors, Inc. amount to $110,000. The firm's total receivables are $7,000, representing 25 days' sales. The firm's profit margin is 8 percent. Use a 365-day year and round your answers to two decimals. A) What is Party Favor's asset turnover ratio? B) What is its ROA?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The average total assets of Party Favors, Inc. amount to
$110,000. The firm's total receivables are $7,000,
representing 25 days' sales. The firm's profit margin is
8 percent. Use a 365-day year and round your answers
to two decimals.
A) What is Party Favor's asset turnover ratio?
B) What is its ROA?
Transcribed Image Text:The average total assets of Party Favors, Inc. amount to $110,000. The firm's total receivables are $7,000, representing 25 days' sales. The firm's profit margin is 8 percent. Use a 365-day year and round your answers to two decimals. A) What is Party Favor's asset turnover ratio? B) What is its ROA?
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