In ts 2006 annual report Campbell Soup Company reports beginning-of-the-year total assets of $6,776 million, end-of-the-year total

Question:

In ts 2006 annual report Campbell Soup Company reports beginning-of-the-year total assets of $6,776 million, end-of-the-year total assets of $7,870 million, total sales of $7,343 million, and net income of $766 million.

(a) Compute Campbell’s asset turnover ratio.

(b) Compute Campbell’s profit margin on sales.

(1) Using assets turnover and profit margin and

(2) Using net income.

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.