Essay
Forcum Company reports the following information (in millions) during a recent year: net sales, $12,408.5; net earnings, $344.9; total assets, ending, $4,312.6; and total assets, beginning, $4,254.3.
Instructions
(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin ratios.
(b) Prove mathematically how the profit margin and asset turnover ratios work together to explain return on assets, by showing the appropriate calculations.
Correct Answer:
Verified
Correct Answer:
Verified
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