2. Wakers, Inc., has sales of $40 million, total assets of $23 million, and total debt of $6 million.

2.1 If the profit margin is 10 percent, what is the net income?

a. 4,000,000

b. 2,300,000

c. 3,900,000

d. 1,700,000

e. 3,600,000

2.2 What is the ROA

a. 15.65%

b. 17.39%

c. 23.53%

d. 26.09%

e. 66.67%

2.3 What is the ROE

a. 17.39%

b. 23.53%

c. 26.09%

d. 66.67%

e. 21.18%