[FONT=verdana, arial, sans-serif][COLOR=#000000]***I do not expect for you to give me the answer to this problem just with a question I have about a specific part.***[/COLOR][/FONT]
[FONT=verdana, arial, sans-serif][COLOR=#000000] They want me to calculate profit margin and asset turnover. I know what I'm supposed to do but I also know its Net income divided by [/COLOR][/FONT]Net Sales for profit margin, and Net sales[FONT=verdana, arial, sans-serif][COLOR=#000000] divided by average total assets for asset turnover. I just don't know where I'm supposed to be getting the net sales number from. All I have are Sales revenue and net income. How do I find the net sales?[/COLOR][/FONT]
[FONT=verdana, arial, sans-serif][COLOR=#000000]Lymen International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the company’s current offerings, but offer a complementary fit to its existing product line. Fred Riddick, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Barbara Dyson, the company’s CFO, has provided the following projections based on results with and without the new products.[/COLOR][/FONT]
Sales revenue $11,934,600 $17,143,000 Net income $466,900 $915,800 Average total assets $5,874,900 $13,914,900
(a) Compute the company’s return on assets, profit margin, and asset turnover, both with and without the new product line. [COLOR=#ff0000](Round answers to 0 decimal places, e.g. 2% and asset turnover to 1 decimal place, e.g. 6.2)
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