Brads BBQ reported sales of $ 735,000 and net income of $ 28,000 in its 2015 income

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Brad’s BBQ reported sales of $ 735,000 and net income of $ 28,000 in its 2015 income statement. Brad’s also reported total assets of $ 496,000 in its 2015 balance sheet and $ 389,000 in its 2014 balance sheet.

Required:
Calculate the return on assets, the profit margin, and the asset turnover 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...
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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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