D.J. Company had total assets of $640,000 in 20x2, $680,000 in 20x3, and $760,000 in 20x4. Its

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D.J. Company had total assets of $640,000 in 20x2, $680,000 in 20x3, and $760,000 in 20x4. Its debt to equity ratio was 67 times in all three years. In 20x3, the company had net income of $77,112 on revenues of $1,224,000. In 20x4, the company had net income of $98,952 on revenues of $1,596,000. Compute the profit margin, asset turnover, return on assets, and return on equity for 20x3 and 20x4. Comment on the apparent cause of the increase or decrease in profitability. (Round the percentages and other ratios to one decimal place.) L01

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Financial Accounting

ISBN: 9780618310746

8th Edition

Authors: Belverd E. Needles Jr,, Marian Powers

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