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Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms: Assume tax rate

Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms:
Assume tax rate is 21%.
a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms.
b. Now assume that the two companies merge. If Federal continues to sell goods worth $103 million, how will the three ratios
change?
Complete this question by entering your answers in the tabs below.
Required A
Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms.
Note: Do not round intermediate calculations. Round the sales-to-assets ratio answers to 2 decimal places. Enter the
operating profit margin and return on assets answers as a percent rounded to 2 decimal places.
Sara Togas sells all its output to Federal Stores. The following table shows selected financial data, in millions, for the two firms:
Assume tax rate is 21%.
a. Calculate the sales-to-assets ratio, the operating profit margin, and the return on assets for the two firms.
b. Now assume that the two companies merge. If Federal continues to sell goods worth $103 million, how will the three ratios
change?
Complete this question by entering your answers in the tabs below.
Now assume that the two companies merge. If Federal continues to sell goods worth $103 million, how will the three ratios
change?
Note: Do not round intermediate calculations. Round the sales-to-assets ratio answer to 2 decimal places. Enter the operating
profit margin and return on assets answers as a percent rounded to 2 decimal places.
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