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25 April, 05:11

Melanie's Bead Shoppe has total assets of $45,000, accounts receivable of $2,000, accounts payable of $3,100, and inventory valued at $20,000. Last year, her net sales were $29,000, and her operating profit margin equaled $14,000. What is her return on assets

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  1. 25 April, 07:17
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    31.11%

    Explanation:

    Given that,

    Total assets = $45,000

    Accounts receivable = $2,000

    Accounts payable of $3,100

    Inventory valued at $20,000

    Net sales = $29,000

    Operating profit margin = $14,000

    Return on assets:

    = (Operating profit margin : Total assets) * 100

    = ($14,000 : $45,000) * 100

    = 0.3111 or 31.11%

    Therefore, the Melanie's Bead Shoppe return on assets is 31.11%.
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