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answer a, b, c, d 1. [ROA and ROE Models and Ratio Components] The Salza Technology Corporation successfully increased its top line sales from $375,000
answer a, b, c, d
1. [ROA and ROE Models and Ratio Components] The Salza Technology Corporation successfully increased its "top line" sales from $375,000 in 2018 to $450,000 in 2019. Net income also increased as did the venture's total assets. You have been asked to compare the financial performance between the two years. 34 Chapter 5 Evaluating Operating and Financial Performanco BALANCE SHEETS AS OF DECEMBER 31 (IN \$THOUSANDS) Chapter 5 Evaluating Operating-and Financinl Performance BALANCE SHEETS AS OF DECEMBER 31 (IN \$THOUSANDS) A. Calculate the net profit margin and the sales-to-total-assets ratio for Salza for 2019 using average total assets. Also calculate the return on total assets in 2019 using average total assets. B. Calculate the ratios in the ROA model for both 2018 and 2019 using year-end total assets. Comment on any financial ratio differences. C. Expand the 2019ROA model discussed in Part A into an ROE model that includes financial leverage as measured by the equity multiplier. Use average owners' or stockholders' equity in your calculation. D. Expand the 2018 and 2019 ROA model calculations in Part B into ROE models based on year-end owners' or stockholders' equity amounts Step by Step Solution
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