Polly Esther Dress Shops Inc. can open a new store that will do an annual sales
ID: 2709375 • Letter: P
Question
Polly Esther Dress Shops Inc. can open a new store that will do an annual sales volume of $858,900. It will turn over its assets 2.1 times per year. The profit margin on sales will be 9 percent.
What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.)
What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.)
Explanation / Answer
Net income = 858900*0.09 = 77,301
assets = 858900/2.1 = 409,000
return on assets = 77301/409000 = 18.90%