Question
SW Inc. financial statements for 2017 show Balance Sheet, 12/31/2525 Income, 1/1 - 12/31/2525 $1,800 Current assets $2,700 Debt Sales $21,460 $4,000 PP&E $3,100 Stockholders
SW Inc. financial statements for 2017 show Balance Sheet, 12/31/2525 Income, 1/1 - 12/31/2525 $1,800 Current assets $2,700 Debt Sales $21,460 $4,000 PP&E $3,100 Stockholders equity total costs $20,260 $5,800 Total assets $5,800 net income $1,200 SW Inc. is in an industry where the average net profit margin is 5.70%, the debt-to-asset ratio (= Debt / Total assets) is 47.6%, and return on equity is 50.34%. For the company relative to the industry, select the one statement most consistent with the DuPont analysis.
the companys profit margin indicates its revenues are unusually small relative to its costs
the companys equity multiplier indicates the firm has an unusually small debt burden
the companys asset turnover indicates sales are unusually small relative to its assets
the companys asset turnover indicates sales are unusually large relative to its assets
the companys profit margin indicates its revenues are unusually large relative to its costs
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