Bargain Basement Corporation operates general merchandise and food discount stores in the United States. The company reported the following information for the three years ending December 31, 2017:

Requirements

1. Compute the net profit margin ratio for Bargain Basement Corporation for the years ended December 31, 2017, and December 31, 2016.

2. Compute asset turnover for Bargain Basement Corporation for the years ended December 31, 2017, and December 31, 2016.

3. Compute return on assets for Bargain Basement Corporation for the years ended December 31, 2017, and December 31, 2016.

4. What factors contributed to the change in return on assets during the year?

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A1 Bargain Basement Corporation Consolidated Statements of Operations (Adapted) 2 In millions of USD 3 4 Total net revenue 5 Cost of sales 6 Selling, general and administrative expenses 7 Net income from operations 8 Other revenue (expense) 9 Net income before income taxes 10 Income tax expense 11 Net income For the year ended December 31, 2016 62,000 $ 21,700 32,206 8,094 (810) 7,284 (914) 6,370 $ 2017 80,000 $ 28,800 41,220 9,980 (730) 9,250 (1,050) 8,200 $ 2015 60,000 21,000 35,450 3,550 (780) 2,770 (720) 2,050 12 A1 Bargain Basement Corporation Partial Balance Sheets (Condensed) 2 In millions of USD 3 Total current assets 4 Property, plant and equipment, net 5 Other assets 6 Total assets Dec. 31, 2017 Dec. 31, 2016 Dec. 31, 2015 20,930 $ 5,710 $ 1,140 25,200 870 47,000 $ 25,400 890 32,000 $ 25,000 860 27,000