Required information Strategic Profit Model - Costco Information used to examine the profit margin management path comes from the retailer's income statement, which summarizes a firm's financial performance over a period of time. The information used to analyze a retailer's asset management path primarily comes from the retailer's balance sheet. Whereas the income statement summarizes the financial performance over a period of time, the balance sheet summarizes a retailer's financial position at a given point in time, typically at the end of the fiscal year. For this exercise, information is taken from a previous annual report from Costco. The strategic profit model is a method for summarizing the factors that affect a firm's financial performance, as measured by return on assets. Return on assets is an important performance measure for a firm and its stockholders because it measures the profits that a firm makes relative to the assets it possesses. The strategic profit model decomposes ROA into two components: (1) eperating profit margin percentage and (2) asset turnover. These two components illustrate that ROA is determined by two sets of activities-profit margin management and asset turnover management-and that a high ROA can be achieved by various combinations of operating profit margins and asset turnover levels. Choose the appropriate ratio for Net Profit Margin Percent * Asset Turnover from the below options. Total Assets 5 Asset Turnover 113 Gross Margin int Net Operating Profit before Taxes ences Net Profit after Taxes Net Profit Margin Percent Return on Assets