Pony Express Company has $750,000 in assets and $300,000 of debt. The income for the year is
Question:
Pony Express Company has $750,000 in assets and $300,000 of debt. The income for the year is $55,000.
a. Calculate the ROA.
b. Determine the return on shareholders' equity.
c. If the asset turnover ratio is 2.2 times, what is the profit margin?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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a b Shareholders equity Total assets total debt 750...View the full answer
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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