This problem continues the Davis Consulting, Inc. situation from Problem P23- 36 of Chapter 23. Davis Consulting

Question:

This problem continues the Davis Consulting, Inc. situation from Problem P23- 36 of Chapter 23. Davis Consulting reported 2016 sales of $ 3,750,000 and operating income of $ 210,000. Average total assets during 2016 were $ 600,000. Davis’s target rate of return is 14%.
Calculate Davis’s profit margin ratio, ratio, ROI, and RI for 2016.

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.