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Question
Forcum Company reports the following information (in millions) during a recent year: net sales, $12,408.5; net earnings, $304.9; total assets, ending, $4,312.6; and total assets, beginning, $4,254.3.
Instructions
(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin ratios.
(b) Prove mathematically how the profit margin and asset turnover ratios work together to explain return on assets, by showing the appropriate calculations.
Answer
This answer is hidden. It contains 211 characters.
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