ANSWERS TO QUESTIONS
Profit margin on sales: $556 = 4.11% $13,516 The asset turnover ratio times the profit margin on sales provides the rate of return on assets computed for Eastman Kodak as follows: Profit margin on sales X Asset Turnover Return on Assets 4.11% X .914 = 3.76% Note the answer 3.76% is the same as the rate of return on assets computed in (b) above. ................
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