Principles of Accounting
Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 5, Problem 6EA

1.

To determine

Calculate profit margin.

2.

To determine

Calculate asset turnover ratio.

3.

To determine

Calculate return on assets ratio.

4.

To determine

Calculate debt-to-equity ratio.

5.

To determine

Calculate return on equity.

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The income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports accounts receivable, net of $535.3 million at December 31 of the current year and $572.2 million at December 31 of the previous year.         The days sales outstanding in the current year are:
Blossom Company reports the following information (in millions) during a recent year: net sales, $23,575.2; net earnings, $653.6; total assets, ending, $9,055.2; and total assets, beginning, $8,933.4. Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin ratios. (Round answers to 1 decimal place, e.g. 15.2% or 15.1.) (1) (2) (3) Return on assets Asset turnover Profit margin % times %
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