Answered step by step
Verified Expert Solution
Question
1 Approved Answer
complete the problems using excel formula P.1: Profitability ratios (L02) Low Carb Diet Supplement Inc, has two divisions. Division A has a profit of $156,000
complete the problems using excel formula
P.1: Profitability ratios (L02) Low Carb Diet Supplement Inc, has two divisions. Division A has a profit of $156,000 on sales of $2,010,000, Division B is able to make only $28,800 on sales of $329,000, Based on the profit margins (returns on sales), which division is superior? Hint: Profit Margin = "fetum on Sales" - Net Income/Sales - Set this up on your own. P-2. Profitabillty ratios (tO2) Database Systems is considering expansion into a new product line. Assets to support expansion will cost $380,000. It is estimated that Database can generate $1,410,000 in annual sales, with an 8 percent profit margin [Return on 59 les]. What would net income and return on assets (investment) be for the year? Hint: in Problem 1 (above), Return on Sales (Profit Margin) was the unknown and was determined by computing two known values; namely, Return on Sales = Net income/I Sales. Now Net Income is unknown while Return on Sales and Sales are known So Algebralcally rearrange the formula to solve for Net income - Do this on your own. *Remember the Equation Equity and Opposite Process Rules P.3: Profitability ratios (LO2) Polly Esther Dress Shops Inc. can open a new store that will do an annual sales volume of $837,900, It will turn over its assets 1.9 times per year. The profit margin on sales will be 8 percent. What would net income and return on assets (investment) be for the year? Hint: Total Asset Turnover = SalesfTotal Assets. Rearrange this formula to solve for Totol Assets; Return on Sales a Net income / Sales ...Rearrange this formula to solve for Nef income; You will then be able to determine the Return on Assets (which is equal to: Net Income/Total Assets). -Remember the Equation Equity, Opposite Process, and Multiple Process Rules Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started