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

Quizplus · Accepted Answer

Sales = ($150,000 / 60) × 365 = $912,500ROA = Operating profit margin × Asset turnover= 0.09 × ($912,500 / $750,000)= 0.1095, or 10.95%

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