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20 May, 19:17

Linebarger corporation has net income of $13.69 million and net revenue of $76.24 million in 2017. its assets are $10.16 million at the beginning of the year and $15.17 million at the end of the year. what are linebarger's (a) asset turnover and (b) profit margin? (round answers to 1 decimal place,

e. g. 1.6 or 1.6%.)

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  1. 20 May, 19:34
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    Given:

    net income of $13.69 million

    net revenue of $76.24 million

    assets are $10.16 million at the beginning of the year

    assets are $15.17 million at the end of the year

    Formula:

    Asset Turnover = Revenue/Net Assets

    To get the Net Assets, add the total number of assets at the beginning of the year and at the end of the year, then divide it into 2.

    Net Assets = ($10.16 million + $15.17 million) / 2

    Net Assets = $12.665 million

    Then substitute the necessary values

    Asset Turnover = $76.24/$12.665

    a.) The asset turnover is equal to 6.019 or 6.0%

    Formula:

    Profit Margin = Net Income/Net Sales (Revenue)

    Profit Margin = $13.69 million/$76.24 million

    Profit Margin = 0.179 or 0.2%

    b.) The profit margin is equal to 0.2%
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