Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.27E
Computing asset turnover ratio
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:
| Net sales | $440,000 | |
| Dec.31, 2016 | Dec. 31, 2015 | |
| Cash | $ 26,000 | $ 28,000 |
| Accounts Receivable | 56,000 | 58,000 |
| Merchandise Inventory | 79,000 | 76,000 |
| Prepaid Expenses | 8,000 | 14,000 |
| Property, plant, and equipment, net | 180,000 | 11,000 |
Compute the asset turnover ratio for 2016.
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The following information relates to Mazy's Inc.
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Note: Carry all decimals in calculations; enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.
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b. Compute the return on assets ratio for fiscal years 2016 and 2015.
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Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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