Question 2

(ROE, ROA, and gross profit) The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands):

		2018		2019		2020
Sales		$25,800		$28,100		$30,700
Average total assets		33,240		44,960		48,790
Average shareholders equity		20,590		22,470		24,880
Net income		990		2,430		2,530
Gross profit		12,900		16,101		17,775

For each year:

Calculate the return on equity. (Round answers to 1 decimal place, e.g. 15.1%.)

		2018		2019		2020
Return on equity		%		%		%

Calculate the return on assets. (Round answers to 1 decimal place, e.g. 15.1%.)

		2018		2019		2020
Return on assets		%		%		%

Calculate the companys gross margin. (Round answers to 1 decimal place, e.g. 15.2%.)

		2018		2019		2020
Gross margin		%		%		%