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37/quizzes/4155 /questions/81 Year 1 Year 2 Asset Turnover N/A 0.14545 Average Inventory Holding N/A 121.67 Period Debt/Equity N/A 1.2 Gross Profit MARGIN N/A 30%

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37/quizzes/4155 /questions/81 Year 1 Year 2 Asset Turnover N/A 0.14545 Average Inventory Holding N/A 121.67 Period Debt/Equity N/A 1.2 Gross Profit MARGIN N/A 30% Net Profit Margin N/A ?? Total Assets N/A 110,000 Common Equity 40,000 40,000 Sales 15.000 20,000 Sales Return 3,000 4,000 SG&A Expenses 1,500 2,000 Interest Expense 700 800 Taces 900 1,000 EBIT 10,500 ?? Dividend P/O N/A 50% DTL (Degree of Total N/A 2.39 Leverage) DOL (Degree of Operating N/A 1.71 Leverage) The degree of financial leverage in Year 2 is closest to:

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