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Retailers Inc

question 104

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Retailers Inc.and Computer Corp.each have assets of $10,000 and a return on common equity equal to 15%.Retailers has twice as much debt and twice as many sales relative to Computer Corp.Retailers' net income equals $750,and its total asset turnover is equal to 3.What is Computer Corp.'s profit margin?

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Definitions:

Outstanding Deposits

Funds that have been deposited but not yet credited to the depositor's account or cleared by the bank.

Outstanding Checks

Unprocessed checks that have been written and deducted from an account's balance but not yet presented for payment or cleared.

Check Register

A record book or ledger that tracks all checks written, deposits made, and current balance for a checking account.

Cash Balance

The total amount of cash in a company's account at any given time.

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