Question

# Crane Company reports the following information (in millions) during a recent year: net sales, \$10,177.2; net...

Crane Company reports the following information (in millions) during a recent year: net sales, \$10,177.2; net earnings, \$246.7; total assets, ending, \$5,130.0; and total assets, beginning, \$5,150.0.

(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% and 6.2.)

 Return on assets Asset turnover Profit margin 1 enter the return on assets in percentages rounded to 1 decimal places % 2 enter the asset turnover rounded to 1 decimal places times 3 enter the profit margin in percentages rounded to 1 decimal places %

 . 1) Average Assets = (beginning Assets + ending Assets)/2 = ( \$5130+5150)/2 = \$ 5140 Return On Assets = Net Income / Average Assets = \$246.7/5140 =4.8 % 2) Assets Turnover Ratio = Sales / average Assets = \$10177.2/5140 =2.times 3) Profit Margin = Net Income / Sales = \$246.7/10177.2 =2.4 %

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