steps

48,3332 Part 1. Calculate the ROA Average Total Assets Average interest bearing debt 10,000 30,000 Average other liabilities Part 2. The company thinks that next year it can add 0.40% to its current EBI profit margin without affecting the ratio of sales to average assets. For example, if the current EBI margin is 5.00%, the company thinks they can make it 5.40% without affecting the ratio of sales to average assets. Average Shareholders' Equity 8,333 Sales 87,000 If they are successful, what do you expect the ROA to be next year? Interest expense 1,000 Net income 4,744 35.0% Tax rate