A firm has sales of 210 million and assets of 50 million.

The debt ratio is 25% and the current ratio is 4.

The firm has fixed assets of 34 million.

The operating profit margin is 20% and the net profit margin is 15%.

What is the return on assets?

		42%
		25%
		37.5%
		63%

A firm decreases it cost of good sold. Which of the following is TRUE?

		the total asset turnover will increase
		the times interest earned will decrease
		the operating profit margin will decrease
		the net profit margin will increase