Solution-Calculate daycos asset turnover ratio

Calculate daycos asset turnover ratio

Assignment Help Cost Accounting

Reference no: EM13523173

The Dayco Manufacturing Company had the following financial statement results for last year. Net sales were $1.2 million with net income of $90,000. Total assets at year end amounted to $900,000.

a. Calculate Dayco's asset turnover ratio and its profit margin.

b. Show how the two ratios in Part (a) can be used to determine Dayco's rate of return on assets.

c. Dayco operates industry average ratios are these: Return on assets: 11 percent; Asset turnover: 2.5 times; Net profit margin: 3.6 percent. Compare Dayco's performance against the industry averages.

Reference no: EM13523173

Questions Cloud

Prepare journal entry to recognize the income tax benefit : Prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option.

Find the cars speed and the trains acceleration : A 108m long train starts from rest (at t=0) and accelerates uniformly. At the same time (at t=0), a car moving with constant speed in the same direction reaches the back end of the train. find the cars speed and the trains acceleration

How many rooms do they have to sell each month : Nixon's Bed and Breakfast has a fixed cost of $5000 per month and the revenue they receive from each booked room is $200. The variable cost per room is $75. How many rooms do they have to sell each month to break even

Determine the time the ball is in the air : Julie throws a ball to her friend Sarah. The ball leaves Julie's hand a distance 1.5 meters above the ground with an initial speed of 19.0 m/s at an angle 48.0 degrees; What is the time the ball is in the air

Calculate daycos asset turnover ratio : Calculate Daycos asset turnover ratio and its profit margin and show how the two ratios in Part (a) can be used to determine Dayco's rate of return on assets.

Explain the compatibilists account of moral responsibility : What does it mean to say that a person is morally responsible for a choice or action? Explain the Hard Determinist’s claim that although we are never morally responsible for our choices and actions, our practices of praise and blame, reward and pu..

Determine markup necessary to make desired return : Determine the markup necessary to make the desired return on investment based on the information

What is the secondary ratio : There are no results for For a transformer with Vp=120Vrms, and turn ratio of 8 to 1 with a RL of 500. What is the secondary ratio

Project expected return risk : Project Expected Return Risk

User Account

All Pages

Calculate daycos asset turnover ratio

Reference no: EM13523173

Reference no: EM13523173

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT