Stockholders' Equity Calculate and interpret ratios Data from the financial statements of Eclectic Candle Company included the following Average total assets Average common stockholders' equity Net sales Net income $50,000 20,000 100,000 7,500 The company had no preferred stock Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirements 1 Calculate the following ratios: a. Net profit margin b. Asset turnover ratio C. Leverage ratio d. Return on assets (ROA) e. Return on equity (ROE) 2 Which is higher, ROA or ROE? 1. Calculate the following ratios. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Net profit margin ratio Asset turnover ratio Leverage ratio Return on assets (ROA) Return on equity (ROE) a. b. c. d. e. 2. Which is higher, ROA or ROE