Question
ABC Corporation has just completed its financial statements for the year ended December 31, 2022. The income statement shows a net income of $500,000 and
ABC Corporation has just completed its financial statements for the year ended December 31, 2022. The income statement shows a net income of $500,000 and the balance sheet indicates total assets of $2,000,000 and total liabilities of $1,000,000. Calculate the following ratios and provide a brief interpretation of each:
a) Return on Assets (ROA)
b) Debt to Equity Ratio
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Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
10th Canadian edition Volume 2
978-0134213118, 134213114, 133855384, Google Book, 978-0133855388
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