The following is selected data for Simpson Equipment, Inc., for the current year: Sales ................................................. $782.000 Net
Question:
The following is selected data for Simpson Equipment, Inc., for the current year:
Sales ................................................. $782.000
Net income ........................................... 55,000
Total current assets, beginning ....................... 92,000
Total current assets, ending ......................... 117,000
Property, plant and equipment, beginning ........... 294,000
Property, plant and equipment, ending .............. 320.000
Total assets, beginning ................................ 386,000
Total assets, ending .................................. 437,000
Requirement
Calculate the return on assets (ROA) and the fixed asset turnover ratio for Simpson Equipment for the current year. Round your answers to two decimal places?
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Step by Step Answer:
Return on Assets Net income Ave...View the full answer
