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Profitability Ratios Use the following information from a balance sheet and an income statement. Total assets $240,000 Total liabilities 60,000 Total stockholders' equity 180,000 Net
Profitability Ratios
Use the following information from a balance sheet and an income statement.
Total assets | $240,000 |
Total liabilities | 60,000 |
Total stockholders' equity | 180,000 |
Net sales | 260,000 |
Cost of goods sold | 140,000 |
Operating expenses | 80,000 |
Compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity. (The previous year's total assets were $200,000, and stockholders' equity was $140,000.) Round your answers to one decimal place.
1. Profit margin | % |
2. Asset turnover | times |
3. Return on assets | % |
4. Debt to equity ratio | % |
5. Return on equity | % |
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