In its 2007 Annual Report Campbell Soup Company reports beginning-of-the-year to
ID: 2435137 • Letter: I
Question
In its 2007 Annual Report Campbell Soup Company reports beginning-of-the-year total assets of $7,745 million, end-of-the-year total assets of $6,445 million, total sales of $7,867 million, and net income of $854 million.(a) Compute Campbell's asset turnover ratio. (Round answer to 3 decimal places,i.e. 5.252.)
______________ times
(b) Compute Campbell's profit margin on sales. (Round answer to 2 decimal places, i.e. 5.25.)
__________________ %
(c) Compute Campbell's rate of return on assets. (Round answers to 2 decimal places, i.e. 5.25.)
________________________ %
Explanation / Answer
(a) Compute Campbell's asset turnover ratio. (Round answer to 3 decimal places,i.e. 5.252.) (Net Sales ÷ Average assets) __1.016_______ times (b) Compute Campbell's profit margin on sales. (Round answer to 2 decimal places, i.e. 5.25.) _((Net Income ÷ Net Sales) x 100) ___10.86%__ (c) Compute Campbell's rate of return on assets. (Round answers to 2 decimal places, i.e. 5.25.) ((Net Income ÷Average assets) x 100)____11.03%______