What is the ROA of a firm with $150,000 in average receivables, which represents 60 days sales, average assets of $750,000, and a profit margin of 9%?
A) 7.50%
B) 9.00%
C) 10.95%
D)16.70%

Name: What is the ROA of a firm with $150,000 in average receivables, which represents 60 days sales, average assets of $750,000, and a profit margin of 9%? A) 7.50% B) 9.00% C) 10.95% D)16.70%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sales = ($150,000/60) × 365 = $912,500ROA = Profit margin × Asset turnover= .09 × ($912,500/$750,000)= .1095, or 10.95%

What Is the ROA of a Firm with $150,000 in Average