2-8 At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets. (a) If WFL’s total assets turnover was 2.0, what were its sales revenues? (b) If WFL’s return on assets was 6 percent, what were its net income and net profit margin? Total asset turnover = sales revenues / total assets 2 = sales revenues / $150,000 = sales revenues = $300,000 ROA = NET INCOME / TOTAL ASSETS .06 = NET INCOME / 150,000 = Net income = $9,000 Net profit margin = net income / sales revenue = .03 = 3%