You calculate Return on Assets (ROA) and find it to be 5.39% based on net income (available to common stockholders) of $350,000 and total assets of $6,500,000. You dig further and find that sales were $10,000,000.

What does this information tell you about the company's net profit margin and total asset turnover?

Provide values to support your assessment.

Choose ONE:

• Net Profit Margin = 3.75% and Total Asset Turnover = 1.45
• Net Profit Margin = 3.0% and Total Asset Turnover = 1.54
• Net Profit Margin = 3.5% and Total Asset Turnover = 1.75
• Net Profit Margin = 3.5% and Total Asset Turnover = 1.54