# Financial Management

Billy’s Chrystal Stores, Inc., has assets of \$5,000,000 and turns over its assets 1.2 times per year. Return on assets is 8 percent.

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1. Sales = Assets x Total Asset turnover
Sales = \$5,000 x 1.2 = \$6,000,000
Net Income = Assets x return on assets
Net income =\$5,000,000 x 8% = \$400,000
Net Income/Sales = \$4,00,000/\$6,000,000 = 6.67%

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posted by Hussein

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