Relationships among Return on Assets, Return on Sales, and Asset Turnover

A company's return on assets is a function of its ability to turn over its investment (asset turnover) and earn a profit on each dollar of sales (return on sales).

Required:

For each of the following independent cases, determine the missing amounts. (Note: Assume in each case that the company has no interest expense; that is, net income is used as the definition of income in all calculations.) Round to the nearest whole number.

Case 1
Net income	$12,000
Net sales	$38,400
Average total assets	$120,000
Return on assets	%
Case 2
Net income	$52,000
Average total assets	$444,600
Return on sales	6%
Net sales	$
Case 3
Average total assets	$56,000
Asset turnover	2 times
Return on sales	4%
Return on assets	%
Case 4
Return on assets	13%
Net sales	$35,000
Asset turnover	1.75 times
Net income	$
Case 5
Return on assets	14%
Net income	$7,000
Return on sales	4%
Average total assets	$