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?

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?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...

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