Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were $80 million at the beginning of the year and $88 million at the end of the year. Calculate Peyton's return on assets, profit margin, and asset turnover ratios. (Round your final answers to 1 decimal place. Enter your answers in millions. (i. e., $5,500,000 should be entered as 5.5).)

Peyton's return on assets, profit margin, and asset turnover ratios are:

a. Return on assets

Average total assets= (Beginning assets +  Ending assets)/2

Average total assets= ($80 million + $88 million)/2

Average total assets= $168 /2

Average total assets= $84 million

Return on Assets = Annual Net Income ÷ Average Total assets

 Return on Assets = $13.4 million ÷ $84 million

 Return on Assets = $159.52 million

b. Profit Margin

Profit Margin = Net Income ÷ Net Sales

Profit Margin= $13.4 million ÷ $114 million

Profit Margin= 11.75%

c. Assets turnover ratio

Average total assets =(Beginning assets +  Ending assets)/2

Average total assets= ($80 million + $88 million) /2

Average total assets= $168 /2

Average total assets= $84 million

Asset Turnover Ratio = Net Sales ÷ Average Total assets

 Asset Turnover Ratio= $114 million ÷ $84 million

 Asset Turnover Ratio= 1.36 times

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Return on Assets = 159.52%

Profit Margin = 11.75%

Asset Turnover Ratio = 1.36 times

Explanation:

The computation of return on assets, profit margin, and asset turnover ratios is shown below:-

a. Return on assets

Average Total Assets = Assets in the beginning + Assets at the end ÷ 2

= ($80 million + $88 million) ÷ 2

= $168 ÷ 2

= $84 million

Return on Assets = Annual Net Income ÷ Average Total assets

= $13.4 million ÷ $84 million

= $159.52 million

b. Profit Margin

Profit Margin = Net Income ÷ Net Sales

= $13.4 million ÷ $114 million

= 11.75%

c. Assets turnover ratio

Average Total Assets = Assets in the beginning + Assets at the end ÷ 2

= ($80 million + $88 million) ÷ 2

= $168 ÷ 2

= $84 million

Asset Turnover Ratio = Net Sales ÷ Average Total assets

= $114 million ÷ $84 million

= 1.36 times

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

answer; tech (a) is correct;