Which formula "calculates" the return on assets ratio? A. (Net Income + Interest Expense)/Average Assets. B. (Net Income + Extraordinary Items)/Average Assets C. (Net Income + Discontinued Operations)/Average Assets D. (Net Income + Income Tax Expense)/Average Assets. E. None of these.

Financial statement ratio analysis may be undertaken to study liquidity, turnover, profitability, and other measures. What type of ratio is the return on equity ratio? A. Liquidity. B. Turnover. C. Profitability. D. Other. E. None of these.

Taylor Company had net income of $50,000, paid income taxes of $20,000, and had before tax interest expense of $10,000. What was Taylor's times interest earned ratio? A. 5 B. 6 C. 7 D. 8 E. None of these.