Logical Relationships. In each of the following situations, compute the informnation requested:

1. What is the return on sales if the asset turnover is 2.6 and 13 percent is earned on assets?

2. Sales for the year were \(\$ 28,000,000\), and the average asset investment was \(\$ 8,000,000\). Determine the asset turnover.

3. Assets are turned over 0.8 times in earning 15 percent on the sales dollar. What is the return on assets?

4. With an asset turnover of 2.5 , what must be the return on sales if the return on assets is 15 percent?

5. If shareholders' equity is equal to 60 percent of total liabilities and shareholders' equity, what is the rate of return on shareholders' equity if 9 percent is earned on total assets invested?

6. The return on assets was 16 percent, and 8 percent was earned on net sales. What was the asset turnover?

7. The return on assets has been computed at 14 percent. The riet income was \(\$ 840,000\), and the asset turnover was 2. Determine the amount of sales and the return on sales.

8. If the total cost of operations, excluding income tax, amounts to \(\$ 2,600,000\), compute sales if net income is 5 percent of sales. The income tax has been computed at \(\$ 250,000\).

9. The return on sales has remained at 6 percent for the past two years. The asset turnover in the first year was 2.4 and declined to 1.8 in the second year. Compute the return on assets for each of the two years.

10. Net sales for the year were \(\$ 9,600,000\). Assets turned over 1.2 times during the year. Cost of goods sold and operating expenses, including income tax, amounted to \(\$ 8,880,000\). Compute the return on net sales and on total assets.