Augusta Catering had net income of $11.44 million and net revenue of $88 million in 2008. Its

Question:

Augusta Catering had net income of $11.44 million and net revenue of $88 million in 2008. Its assets were $14 million at the beginning of the year and $18 million at the end of the year. What were

(a) Augusta’s asset turnover and

(b) Profit margin for 2006?

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.