Goals for Sales and Return on Assets The president of Blue Moon Corp..docx - Goals for Sales and Return on Assets The president of Blue Moon Corp and

Goals for Sales and Return on Assets The president of Blue Moon Corp..docx

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Goals for Sales and Return on Assets The president of Blue Moon Corp. and her department managers are reviewing the operating results of the year just completed. Sales increased by 12% from the previous year to $750,000. Average total assets for the year were $400,000. Net income, after adding back interest expense, net of tax, was $60,000. The president is happy with the performance over the past year but is never satisfied with the status quo. She has set two specific goals for next year: (1) a 15% growth in sales and (2) a return on assets of 20% To achieve the second goal, the president has stated her intention to increase the total asset base by 10% over the base for the year just completed Required: 1. For the year just completed, compute the following ratios: For return on sales, round calculations to two decimal places, then,
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