Balance Sheet Data Income Statement Data Cash $1,300,000 Accounts receivable 2,600,000 Inventory 3,900,000 Current assets 7,800,000 Accounts payable $1,560,000 Accruals 520,000 Notes payable 2,080,000 Current liabilities 4,160,000 Long-term debt 3,640,000 Total liabilities 7,800,000 Common stock 1,300,000 Retained earnings 3,900,000 Total equity 5,200,000 Total debt and equity $13,000,000 Sales $26,000,000 Cost of goods sold 13,000,000 Gross profit 13,000,000 Operating expenses 6,500,000 EBIT 6,500,000 Interest expense 686,400 EBT 5,813,600 Taxes 1,453,400 Net income $4,360,200 Net fixed assets 5,200,000 Total assets $13,000,000 Ratios Value Correct/Incorrect Value Correct/Incorrect Ratios Asset management ratio Total assets turnover 50.00 2.00 Profitability ratios Gross profit margin (%) Operating profit margin (96) Net profit margin (%) Return on equity (%) 22.36 33.54 Financial ratios Equity multiplier 112.02 1.67 Ratios Calculation Value Numerator Denominator 7 Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Asset management ratio Total assets turnover Financial ratios Equity multiplier