Imagine that you are a furniture retailer and need to analyze the dollar investment you need in assets to support your business and how you might finance your assets.

Compute all the strategic profit model rations (NP*,ROA, Asset Turnover, Financial Leverage, Return on Net Worth (ROI))

Your first year sales were $1,000,000, your net profit after taxes was $165,000, total investment in assets was $400,000 while your total debt to finance these assets was $300,000. What would happen to your ratios if your net profit rose to $185,000 instead?