5.Information is provided below for Travis Corp.
(in thousands)20082007
Operating revenues$2,400$2,000
Cost of goods sold1,5001,500
Operating expenses300240
Net income360150
Total assets4,0003,000
Required:
a.Compute profit margin, gross profit margin, operating profit margin, asset turnover, and return on assets for each year rounded to three decimal places.
b.Compare the company's performance during the two years.
6.Virginia needs some accounting data for an upcoming meeting. The firm's computer system is down and is not expected to be running anytime soon. Virginia has compiled the following information from various reports:
Asset turnover1.30 times
Return on assets20%
Inventory turnover3.4 times
Accounts receivable turnover8.0 times
Total assets$450,000
Total debt$250,000
Required:
Use the above information to compute the following:
a.Operating revenues
b.Net income
c.Profit margin
d.Accounts receivable
e.Return on equity