Ask Question
BusinessBusiness
25 February, 04:35

Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 6.5 percent and its return on assets (investment) is 16.25 percent. What is its assets turnover

+3
Answers (2)
  1. 25 February, 05:43
    0
    Answer: 2.50%

    Explanation:

    Asset turn over ratio = net sales or revenue/average total assets

    Net sales/revenue - - 16.25 percent or 16.25%

    Profit margin/average total asset - - 6.5 percent or 6.5%

    Asset turn over ratio = 16.25/6.5

    = 2.50%
  2. 25 February, 06:23
    0
    The assets turnover is 2.54

    Explanation:

    To calculate the assests turnover we have to use the formula of ROA.

    The ROA = Profit margin * Asset turnover ratio

    Therefore the Asset turnover ratio = ROA / Profit margin

    = 0.165 / 0.065

    = 2.54. Asset turnover ratio
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable $ 29,500 $ 45,000 Inventory 31,000 38,000 Net sales (all credit) 194,000 190,000 Cost of goods sold 115,000 112,000
Answers (1)
Joe works with 10 other employees who are responsible for scheduling their own work and assigning specific tasks to individual members, thus eliminating the need for supervision. What type of work group/team is this?
Answers (1)
Is considered the father of free market capitalism. he believed that business was and should be guided by the morals of good men. a. adam smith b. aristotle c. lawrence kohlberg d. immanuel kant e. john maynard keynes?
Answers (1)
After she creates the budget above, Zoe moves in with a roommate so she can save money for a car. Her rent is now 25 percent of her salary. Which of these should she do to buy a car quickly? A.
Answers (1)
Financial satisfaction is more strongly predictive of subjective well-being in poor nations than in wealthy ones. this fact would most clearly be anticipated by
Answers (1)
New Questions in Business
With regard to how people use time and their expectations of how it should be managed, members of which type of culture value efficiency production and fast results?
Answers (1)
How would u approach a fellow co-worker consistently does not perform hand-hygiene when it is indicated or appropriate.
Answers (1)
Which of the following statements is FALSE? A. The effective annual rate indicates the amount of interest that will be earned at the end of the year. B. The annual percentage rate indicates the amount of simple interest earned in one year. C.
Answers (1)
Match the business with the appropriate cost system (s) for that business using the number of the cost system where 1 = job order costing, 2 = process costing, and 3 = activity-based costing. a. Ketcher, Tryer, and Friar, attorneys-at-law b.
Answers (1)
Solemon Company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solemon wants to earn a targeted profit of $3,600, how many units must be sold?
Answers (1)
Home » Business » Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 6.5 percent and its return on assets (investment) is 16.25 percent. What is its assets turnover
Sign Up Forgot Password?