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1) Consider a wholesaler computer company. Its net profit margin 1.5% It has a total asset turnover of 6.2 and an equity Multiplier of 1.5:

1) Consider a wholesaler computer company. Its net profit margin 1.5% It has a total asset turnover of 6.2 and an equity Multiplier of 1.5:

a) what do these numbers tell you?

b) use these ratios to find the companys return on investment and its return on equity (ROE).

2) You have the following information on a food company: current ratio 0.3, quick ratio 2.1, current liabilities $200,000, inventory turnover 6, and Gross profit margin 0.20. Given these figures calculate the companys net sales.

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