Reference no: EM132522650

Question A. Griffey Junior Wear has $800,000 in assets and $200,000 of total debt. It reports net income of $100,000.

Question 1: What is its ROA? (Do not round intermediate calculations. Round the final answer to 1 decimal place.)

Question 2: What is the return on shareholders' equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Question 3: If the firm has an asset turnover ratio of 2.75 times, what is the profit margin? (Round the final answer to 2 decimal places.)

Question B. The Chamberlain Corporation has accounts receivable turnover equal to 12 times. If accounts receivable are $90,000, what is the value for average daily credit sales? (Use 365 days in a year. Round the final answer to the nearest whole number.)

Question C. 2GFU Corporation has the following financial data for the years 20XX and 20XY:

                                             20XX                              20XY

Sales                              $3,500,000                 $4,200,000

Cost of goods sold                  2,500,000                3,500,000

Inventory                                 250,000               300,000

a. Compute inventory turnover based on sales for each year.

b. Compute inventory turnover based on cost of goods sold for each year. (Round the final answers to 1 decimal place.