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Phi Ltd. has the following financial information: Total assets: $500,000 Total liabilities: $200,000 Equity: $300,000 Sales revenue: $400,000 Net income: $50,000 Calculate the following ratios

Phi Ltd. has the following financial information:

  • Total assets: $500,000
  • Total liabilities: $200,000
  • Equity: $300,000
  • Sales revenue: $400,000
  • Net income: $50,000

Calculate the following ratios for Phi Ltd.: a) Debt-to-equity ratio b) Return on equity (ROE)

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