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The Boeing Company lists the following on their income statement: operating profit of $10 million, net sales of $20 million, net income of $5 million.
The Boeing Company lists the following on their income statement: operating profit of $10 million, net sales of $20 million, net income of $5 million. In addition, their balance sheet lists the following: total assets of $40 million and total shareholders' equity of $18 million.
Calculate the basic earnings power ratio, return on assets, and return on equity. What do these ratios suggest about the Boeing Company as it relates to profitability?
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