5 information is provided below for travis corp in thousands 20082007 operating 4352258

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

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