Purchase Solution

Financial Analysis and Planning

Not what you're looking for?

Ask Custom Question

Could you help me calculate the sales-to-assets ratio, the profit margin, and the return on the two firms listed below;

Sales Profits Assets
Federal Stores $100 $10 $50
General Stores 20 4 20
(Financial data is in the millions)

If these two companies were to merge and the federal stores continued to sale goods worth $100 million, could you show me how the three financial ratios would change?

Purchase this Solution

Solution Summary

The solution provides calculations for various ratios for Federal Stores and General Stores and a merger of two

Solution Preview

The sales to asset ratio is calculated by dividing sales by the assets. For federal stores it is 100/50 = 2 and for General Stores it is 20/20=1.
The Profit Margin is calculated by dividing the profit by sales. For Federal Stores it is 10/100=10% and for ...

Purchase this Solution


Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.