Problem:
Given the following information:
sales:48,000,000
CGS:24,000,000
Variable expense:8,000,000
fixed expenses:8,000,000
inventory:6,000,000
account receivable: 3,000,000
other current assets: 4,000,000
fixed assets:10,000,000
Required:
Question 1) What is the net profit margin for this firm? 16.67%
Question 2) What is the asset turn over? $2
Question 3) What is the return on assets? 33.34
Question 4) What is the size of total assets used by the firm?
Solve the given numerical problem and illustrate step by step calculation.