1&2

1, A company has ROA of 12% and asset turnover of 2, what is the profit margin? If the equity multiplier is 5, what is the ROE? 2. A company has the following financial statements, find the financial ratios Total sales 100,000,000 Cost of Merchandise Sold 40,000,000 Gross Profit Operating expense Operating Profit Interests expense Taxable income Taxes Net income 60,000,000 20,000,000 40,000,000 10,000,000 30,000,000 9,000,000 21,000,000 Liabilities Assets Cash Accounts Receivable 1,000,000 Wage Payable 1,500,000 500,000 10,000,000 2,000,000 Accounts Payable Invento Fixed Assets 10,000,000 Bonds Payable 50,000,000 Equity Common Stocks Retained Earnings 40,000,000 11,000,000 Total Assets 63,000,000 Total liabilities and equity 63,000,000 Current Ratio Quick Ratio abhes Debt ratioelau nventory turnover Asset turnover Operating profit margin Net profit margin Return on assets Return on equity