What Is the Return on Sales for TJX Inc

question 162

Multiple Choice

What is the return on sales for TJX Inc. if the current ratio = 2; total asset turnover = 1.5; total assets = $100,000; and EBIT = $30,000? Assume the marginal tax rate for TJX is 40% and that interest expenses are $10,000.

• A) 20%
• B) 8%
• C) 12%
• D) 6%

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Definitions:

Product

An item or service created for sale or use, offering value to customers.

Marketing Mix

An assortment of controllable variables by a company aimed at encouraging customers to buy its offerings, namely product, price, place, and promotion.

Vending Machine

A machine operating automatically that dispenses products like snacks, drinks, and various items to customers once they input money, use a credit card, or insert a purpose-made card.

Marketing Mix

A blend of elements under a company's control designed to motivate purchases by consumers, often referred to as the product, price, location, and advertising.