The following is selected data for Simpson Equipment, Inc., for the current year: Sales ................................................. $782.000 Net

Question:

The following is selected data for Simpson Equipment, Inc., for the current year:

Sales ................................................. $782.000

Net income ........................................... 55,000

Total current assets, beginning ....................... 92,000

Total current assets, ending ......................... 117,000

Property, plant and equipment, beginning ........... 294,000

Property, plant and equipment, ending .............. 320.000

Total assets, beginning ................................ 386,000

Total assets, ending .................................. 437,000

Requirement

Calculate the return on assets (ROA) and the fixed asset turnover ratio for Simpson Equipment for the current year. Round your answers to two decimal places?

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.
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Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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