13 Profitability ratios The following financial information is available about Lim Limited for the financial year ended 31 December: Net profits $150000 400 000 Ordinary shares, 1 January 500 000 Ordinary shares, 31 December Share (market) price at 31 December 10.00 Sales 945000 Total assets, 1 January 800 000 1000 000 Total assets, 31 December Shareholders' equity, 1 January 450 000 Shareholders' equity, 31 December 475000 REQUIRED Calculate and interpret the following: profit margin a b return on equity return on assets d earnings per share price earnings ratio. e