Answered step by step
Verified Expert Solution
Question
1 Approved Answer
River Rocks Inc. operates a large quarry in Central Ontario. Selected data from River Rocks for the year ended December 31, 2023 are presented below:
River Rocks Inc. operates a large quarry in Central Ontario. Selected data from River Rocks for the year ended December 31, 2023 are presented below:
Total assets $1,600,000
Average total assets 1,500,000
Net earnings 123,200
Net sales 1,200,000
Average common shareholders' equity 1,000,000
Net cash provided by operating activities 280,000
Required
- Calculate the profit margin and return on assets for River Rocks for the year ended December 31, 2023.
- Comment on the ratios you prepared in part 1 assuming the following averages for the quarry industry:
Profit margin 8%
Return on Assets 14%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started