PRACTICE PROBLEMS AND SOLUTIONS 1. Barnes Appliances has sales of $10,000,000, net income of $450,000, total assets of $4,000,000, and stockholders' equity of $2,000,000. a. What is the profit margin? b. What is the return on assets? c. What is the return on equity? The debt-to-assets ratio is currently 50 percent. If it were 60 percent, what would the return on equity be? To answer this question, use Ratio 3b in the text