assistance in Question 4
Savings Shack 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, 2020: (Click the icon to view the consolidated statements of operations.) (Click the icon to view the partial balance sheets.) Read the Requirement 1. Compute the net profit margin ratio for Savings Shack for the years ended December 31, 2020, and December 31 , 2019. (Round your answers to the nearest hundre of a percent, X.XX\%). Begin by identifying the formula to calculate profit margin. Net income Net sales = Net profit margin ratio Compute the net profit margin ratio for the year ended December 31, 2020. The net profit margin ratio for the year ended December 31, 2020 is %. Compute the net profit margin ratio for the year ended December 31, 2019. The net profit margin ratio for the year ended December 31, 2019 is % Requirement 2. Compute asset turnover for Savings Shack for the years ended December 31, 2020, and December 31, 2019. (Round your answers two decimal places, X.XX). Begin by identifying the formula to calculate asset turnover. Data table Data table Requirements 1. Compute the net profit margin ratio for Savings Shack for the years ended December 31, 2020, and December 31, 2019. 2. Compute asset turnover for Savings Shack for the years ended December 31, 2020, and December 31, 2019. 3. Compute return on assets for Savings Shack for the years ended December 31, 2020, and December 31, 2019. 4. What factors contributed to the change in return on assets during the year? Savings Shack Corporation operates general merchandise and food discount stores in the United States. The company reported the following information for the three years end December 31, 2020: (Click the icon to view the consolidated statements of operations.) (Click the icon to view the partial balance sheets.) Read the Net income Average total assets = Return on assets (ROA) Compute the return on assets for the year ended December 31, 2020. The return on assets for the year ended December 31,2020 is % Compute the return on assets for the year ended December 31, 2019. The return on assets for the year ended December 31, 2019 is % Requirement 4. What factors contributed to the change in return on assets during the year? The following contributed to the change in return on assets during the year: (If an input field is not used in the table leave the field empty; do not select a label.) Average total assets decreased, decreasing asset turnover Average total assets decreased, increasing asset turnover Average total assets increased, decreasing asset turnover Average total assets increased, increasing asset turnover Cost of goods sold as a percent of sales decreased, decreasing net profit margin ratio Cost of goods sold as a percent of sales decreased, increasing net profit margin ratio Cost of goods sold as a percent of sales increased, decreasing net profit margin ratio Cost of goods sold as a percent of sales increased, increasing net profit margin ratio Sales decreased, decreasing net income and profit margin Sales decreased, increasing profit margin
