Brads BBQ reported sales of $1,063,927 and net income of $68,477 in its 2015 income statement Brads also reported total assets of $675,378 in its 2015 balance sheet and $545,588 in its 2014 balance sheet Required Calculate the return on assets, the profit margin, and the asset turnover ratio for Br...

Net Income Average Total Assets Return on ...

Brads BBQ reported sales of $1,063,927 and net income of $68,477 in its 2015 income statement. Brads

Question:

Brad’s BBQ reported sales of $1,063,927 and net income of $68,477 in its 2015 income statement. Brad’s also reported total assets of $675,378 in its 2015 and $545,588 in its 2014

Required:
Calculate the return on assets, the profit margin, and the ratio for Brad’s BBQ in 2015.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...