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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
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 % %Step by Step Solution
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