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    Return on assets

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    Lily Cosmetics has annual sales of $500,000,000

    maintains a net after tax profit margin of 5%
    and has a sales-to-assets ratio of 4

    a. What is its return on assets?

    b. If its debt/equity ratio is 0.5 what is the return on equity?

    Week 3 - Problem 2

    On average, Microlimp's accounts receivables total $40,000,000 on sales of $400 million

    What is Microlimp's average collection period?

    Week 3 - Problem 3

    How would the following actions affect a firm's current ratio?

    a. Inventory is purchased and paid for with cash, it is not purchased on account.

    b. The firm takes out a short term bank loan to pay its overdue accounts payable.

    c. A customer prepays in full for specially ordered merchandise that it will take 60 days to manufacture.

    d. Inventory is sold at the firm's normal 35% markup over cost.

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    https://brainmass.com/economics/banking/return-on-assets-64219

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    Lily Cosmetics has annual sales of $500,000,000

    maintains a net after tax profit margin of 5%
    and ...

    Solution Summary

    This discusses the computation of return on assets and other rations

    $2.19