Question
Rohlen Company reported the following balance sheet and income statement information: Total assets, Dec. 31, 2022 $97,000 Total assets, Dec. 31, 2021 $85,000 Total liabilities,
Rohlen Company reported the following balance sheet and income statement information:
Total assets, Dec. 31, 2022 $97,000 Total assets, Dec. 31, 2021 $85,000 Total liabilities, Dec. 31, 2022 $13,000 Total liabilities, Dec. 31, 2021 $10,000 Sales revenue, Dec. 31, 2022 $56,000 Sales revenue, Dec. 31, 2021 $51,000 Net income, Dec. 31, 2022 $22,000 Net Income, Dec. 31, 2021 $18,000
Return on Assets (ROA) is composed of Profit Margin (PM) and Asset Turnover (AT). Compute Rohlen's Asset Turnover (AT) for the year ended December 31, 2022.(Round your answer to two decimal places. For example: If your asset turnover is $20,000 / $30,000 = 0.66666, then enter your answer as 0.67. Turnover ratios are NOT percentages, so you would not enter your answer as 66.67).
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