Shopper's World operates general merchandise and food discount stores in the United States. The company reported the

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Shopper's World operates general merchandise and food discount stores in the United States. The company reported the following information for the three years ending December 31, 2015:
Shopper's World operates general merchandise and food discount stores in
Shopper's World operates general merchandise and food discount stores in

Requirements
1. Compute net profit margin ratio for Shopper's World for the years ended December 31,
2015, and December 31, 2014.
2. Compute asset turnover for Shopper's World for the years ended December 31, 2015, and December 31, 2014.
3. Compute return on assets for Shopper's World for the years ended December 31, 2015, and December 31, 2014.
4. What factors contributed to the change in return on assets during the year?

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: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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