In: Accounting
Firm C has net income of $140,000, turnover of 1.91, and ROI of 23.60%. Calculate the firm's margin, sales, and average total assets.
GIven information: Net income=140000 , turnover =1.91 , ROI=23.6%
1) Firms margin
= ROI/Turnover
= 23.06%/1.91
= 12.356%
2)Average total asset = Net income / ROI
= 140000/23.6% =593220.34
3) Sales= turnover * average total asset
= 1.91*593220.34 =1133050.85