Problem 3-8 (Algo) Profitability ratios [LO3-2] Easter Egg and Poultry Company has $1,040,000 in assets and $649,000 of debt. It reports net income of $120,000. a. What is the firm's return on assets? Note: Enter your answer as a percent rounded to 2 decimal places. Return on assets b. What is its return on stockholders' equity? Note: Enter your answer as a percent rounded to 2 decimal places. Return on equity % Profit margin c. If the firm has an asset turnover ratio of 4 times, what is the profit margin (return on sales)? Note: Enter your answer as a percent rounded to 2 decimal places. % %

Problem 3-8 (Algo) Profitability ratios [LO3-2] Easter Egg and Poultry Company has $1,040,000 in assets and $649,000 of debt it reports net income of $120,000. a. What is the firm's return on assets? Note: Enter your answer as a percent rounded to 2 decimal places. b. What is its return on stockholders' equity? Note: Enter your answer as a percent rounded to 2 decimal places. c. If the firm has an asset turnover ratio of 4 times, what is the profit margin (return on sales)? Note: Enter your answer as a percent rounded to 2 decimal places