ACC 304 All Assignments ACC 304 All Assignments | Page 161

occurred, Everly must restore the property (estimated fair value of the
obligation is $90,400), after which it can be sold for $180,800. Everly
estimates that 4,520 tons of coal can be extracted.
5) In its 2011 annual report, Campbell Soup Company reports
beginning-of-the-year total assets of $6,276 million, end-of-the-year
total assets of $6,862 million, total sales of $7,719 million, and net
income of $805 million.
6) Compute Campbell’s asset turnover ratio. (Round answer to 3
decimal places, e.g. 4.871.)
Asset turnover ratio
7) Compute Campbell’s profit margin on sales. (Round answer to 2
decimal places, e.g. 4.87 or 4.87%.)
8) Compute Campbell’s return on assets using (1) asset turnover and
profit margin and (2) net income. (Round answers to 2 decimal places,
e.g. 4.87 or 4.87%.)Return on assets
9) Rembrandt Company acquired a plant asset at the beginning of
Year 1. The asset has an estimated service life of 5 years. An employee
has prepared depreciation schedules for this asset using three different
methods to compare the results of using one method with the results