For the year ended December 31, 2019, Settles Inc. earned an ROI of 12.6%. Sales for the
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For the year ended December 31, 2019, Settles Inc. earned an ROI of 12.6%. Sales for the year were $120 million, and average asset turnover was 2.8. Average stockholders’ equity was $25 million.
Required:
a. Calculate Settles Inc.’s margin and net income.
b. Calculate Settles Inc.’s return on equity.
Asset TurnoverAsset 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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Related Book For
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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