Using the information provided, calculate this firm’s ROA, ROE, gross profit margin, and quick ratio. If this firm’s WACC is 6.6 percent and the average firm in its industry has an ROA of 8 percent, is this firm earning above or below normal economic performance and above or below average accounting performance?

Net sales 6,134 Operating cash 3,226 Net other operating assets 916 Cost of goods sold (4,438) Accounts receivable 681 Total assets 5,161 Selling, general administrative expenses (996) Inventories 20 Net current liabilities 1,549 Other current assets 0 Long-term debt 300 Other expenses (341)

Total current assets 3,927 Deferred income taxes 208 Interest income 72 Gross properties, plant, equipment 729 Preferred stock 0 Interest expense (47)

Retained earnings 0 Provision for taxes (75) Accumulated depreciation (411)

Common stock 3,104 Other income 245 Book value of fixed assets 318 Other liabilities 0 Net income 554 Goodwill 0 Total liabilities and equity 5,161 MyManagementLab®

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