Follies Bookstore, the Only Bookstore Close to Campus, Had Net $\quad$

question 68

Essay

Follies Bookstore, the only bookstore close to campus, had net income in 2005 of $90,000. Here are some of the financial ratios from the annual report. Profit Margin $\quad$$\quad$$\quad$$\quad$$\quad$$12 \%$
Return on Assets $\quad$$\quad$$\quad$$\quad$$20 \%$
Debt to Asset Ratio $\quad$$\quad$$\quad$$55 \%$
Using these ratios, calculate the following for Follies Bookstore:
a) Sales
b) Total assets
c) Total asset turnover
d) Total debt
e) Stockholders' equity
f) Return on equity

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Definitions:

Operating Income

A measure of a company's profit that excludes non-operating expenses such as interest and taxes, focusing on the profit generated from core business operations.

Strategic Performance Measurement System

A framework that integrates financial and non-financial performance indicators to assess an organization's effectiveness in achieving its strategic objectives.

Balanced Scorecard

A management and planning system designed to align a company's operations with its vision and strategic objectives, enhance communication both internally and externally, and track the performance of the organization in relation to its strategic targets.

Lean Management System

An approach focused on reducing waste and improving process efficiency to deliver value to customers.