Answer:
a. 0.557 times
b. 8.72%
c. 0.16
Step-by-step explanation:
a. Asset turnover = Net sales ÷ Average total assets
We will calculate the average total asset first
Average total asset = [Beginning total assets - ending total assets)] / 2
= [(930.9 + 920.1)] / 2
= 925.5
Asset turnover = 515.7/925.5
= 0.557 times
b. Return on assets = Net income/Average total assets
= 80.7/925.5
= 0.087196
= 0.087196 × 100
= 8.72%
c. Profit margin on sales = Net income/Net sales
= 80.7/515.7
= 0.16