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Dear Tutor, My answers are incomplete. I don't seem to know how to compute for the correct gross profit margin when other information are missing.

Dear Tutor,

My answers are incomplete. I don't seem to know how to compute for the correct gross profit margin when other information are missing. Can you help me with the remaining unanswered questions? Thank you

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Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Interest Payment $8 5 Sales $104 24 Federal Stores Sara Togas Assets at Start of Year $54 22.0 Net Income $14 8 Assume tax rate is 35%. a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms. (Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Answer is not complete. Federal Stores Sara Togas 1.93 1.09 % Sales-to-assets ratio Operating profit margin Return on assets % % % b. Now assume that the two companies merge. If Federal continues to sell goods worth $104 million, how will the three ratios change? (Do not round intermediate calculations. Round the sales-to-assets ratio answer to 2 decimal places. Enter the operating profit margin and return on assets answers as a percent rounded to 2 decimal places.) Answer is not complete. Merged Firm 1.37 Sales-to-assets ratio Operating profit margin Return on assets % %

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