Cost of goods
QUESTION :
 Categories
Values
 Sales
$
50,800,000
ÂÂ
Cost of goods sold
$
25,400,000
Â
Variable expenses
$
8,350,000
Â
 Fixed expenses
$
8,420,000
Â
Inventory
$
6,210,000
Â
 Accounts receivable
$
3,280,000
 Other current assets
$
4,280,000
 Fixed assets
$
24,000,000
1.607
Â
Â
Â
The managers of the firm claim that the return on net worth for the firm is 60.4. If the return on assets is 22.85%, then what financialleverage is required to achieve this return? (Round your answer to 2 decimal places.)
Â
 Financial leverage
