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hent Below is financial information for two sporting goods retailers. Extreme Sports Company operates a retail business and franchising business. At the end 2011. Extreme
hent Below is financial information for two sporting goods retailers. Extreme Sports Company operates a retail business and franchising business. At the end 2011. Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores. Extreme's stores are located in suburban, strip mall and regional mall locations, the company operates in 32 states. All Sports Corporation sells sporting goods and related products at over 2.500 Company-operated retail stores. Selected Data for All Sports and extreme Sports (amounts in millions) All Sports $5.320 3,897 138 212 Extreme Sports $1,344 887 43 33 Sales Cost of Goods Sold Interest Expense Net Income Average Accounts Receivable Average Inventory Average Fixed Assets Average Total Assets Average Tax Rate 18 286 114 998 1.163 2.472 4046 130 662 409 Calculate the following ratios for All Sports and extreme Sports: If required, round your answers to two decimal places. All Sports a. Return on assets 8.58 3 Extreme Sports 4.98 3 b. Profit Margin for ROA 3.98 2.46 3
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