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Wildhorse International Inc. is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will
Wildhorse International Inc. is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the company's current offerings, but offer a complementary fit to its existing product line. Frank Peralta, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Carol Herbert, the company's CFO, has provided the following projections based on results with and without the new products Without New Products With New Products Net sales $9,442,000 $16,573,800 Net income 594,800 1,394,400 Average total assets 4,796,000 13,702,000 (a) Calculate the company's return on assets, profit margin, and asset turnover, both with and without the new product line. (Round answers to 1 decimal place, e.g. 15.2% or 15.2.) Without New Products With New Products Return on assets % Profit margin Asset turnover times times
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