Income Ratios and Asset Turnover Zara, Spain luxury fashion house that manufactures clothing, fragrance, and fashion accessories, had net income of £210 million on sales of £1,495 million in 2012. (£ is the British currency, the pound.)

The company’s operating statistics for 2012 included the following:

Operating return on sales 14.85%

Operating return on average total assets 19.61%

Total asset turnover 1.50

Return on shareholders’ equity 31.29%

1. Compute the following 2012 amounts for Zara:

a. Operating income and Average total assets.

b. Average shareholders’ equity

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