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begin{tabular}{|c|c|c|c|c|c|} hline Ratios & Value & Correct/Incorrect & Ratios & Value & Correct/Incorrect hline Profitability ratios & & & Asset management & &

image text in transcribedimage text in transcribedimage text in transcribed \begin{tabular}{|c|c|c|c|c|c|} \hline Ratios & Value & Correct/Incorrect & Ratios & Value & Correct/Incorrect \\ \hline Profitability ratios & & & Asset management & & \\ \hline Gross profit margin (\%) & 50.00 & & Total assets turnover & 2.00 & \\ \hline Operating profit margin (\%) & 22.36 & & & & \\ \hline Net profit margin (\%) & 33.54 & & Financial ratios & & \\ \hline Return on equity (\%) & 112.02 & & Equity multiplier & 1.67 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Ratios & Calculation & & & \\ \hline Profitability ratios & Numerator & & Denominator & \\ \hline Gross profit margin (\%) & & / & & = \\ \hline Operating profit margin (\%) & & / & & = \\ \hline Net profit margin (\%) & & / & & = \\ \hline Return on equity (\%) & & / & & = \\ \hline \multicolumn{5}{|l|}{ Asset management ratio } \\ \hline Total assets turnover & & / & & = \\ \hline \multicolumn{5}{|l|}{ Financial ratios } \\ \hline Equity multiplier & & / & & = \\ \hline \end{tabular} Check all that apply. Decrease the company's use of debt capital because it will decrease the equity multiplier. Use more equity financing in its capital structure, which will increase the equity multiplier. Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's total assets turnover. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin. \begin{tabular}{|c|c|c|c|c|c|} \hline Ratios & Value & Correct/Incorrect & Ratios & Value & Correct/Incorrect \\ \hline Profitability ratios & & & Asset management & & \\ \hline Gross profit margin (\%) & 50.00 & & Total assets turnover & 2.00 & \\ \hline Operating profit margin (\%) & 22.36 & & & & \\ \hline Net profit margin (\%) & 33.54 & & Financial ratios & & \\ \hline Return on equity (\%) & 112.02 & & Equity multiplier & 1.67 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Ratios & Calculation & & & \\ \hline Profitability ratios & Numerator & & Denominator & \\ \hline Gross profit margin (\%) & & / & & = \\ \hline Operating profit margin (\%) & & / & & = \\ \hline Net profit margin (\%) & & / & & = \\ \hline Return on equity (\%) & & / & & = \\ \hline \multicolumn{5}{|l|}{ Asset management ratio } \\ \hline Total assets turnover & & / & & = \\ \hline \multicolumn{5}{|l|}{ Financial ratios } \\ \hline Equity multiplier & & / & & = \\ \hline \end{tabular} Check all that apply. Decrease the company's use of debt capital because it will decrease the equity multiplier. Use more equity financing in its capital structure, which will increase the equity multiplier. Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's total assets turnover. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin

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