Calculate the operating return on assets

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Reference no: EM131487957

Question: Analyzing operating return on assets) In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized total asset turnover of 2.

a. Calculate the operating return on assets in 2015.

b. If the sales were $1 million in 2015 and are expected to increase for 50 percent in 2016, other things being equal, what will be the total asset turnover value in 2016?

c. Assume the operating profit margin remains the same. How will a 50 percent increase in sales affect the operating return on assets in 2016?

Reference no: EM131487957

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