9 Beckinsale Inc has a profit margin of 715 percent on sales

9 Beckinsale, Inc., has a profit margin of 7.15 percent on sales of $25,200,000. Assume the firm has debt of $10,000,000 and total assets of $16,600,000 What is the firm\'s ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places e-g, 32.16.)

Solution

profit margin = net income/sales x 100

7.15 = net income/ 25200000 x 100

net income = 1801800

ROA = net income/ total assets * 100

ROA = 1801800/16600000 *100 = 10.85%

Answer : 10.85%