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Stooges24
Oct 6, 2009, 06:49 AM
Find the ROA (return on assets) when sales is $510,400, total equity is $250,000, profit margin is 8%, and debt-equity ratio is .60

ArcSine
Oct 6, 2009, 06:56 AM
Step by step...

From the given Debt / Equity ratio, and the given amount of Equity, find Debt.

Then, Debt + Equity = Total Assets

From the given Sales and Profit Margin values, find Net Profit.

Finally, ROA = Net Profit / Total Assets

That's the recipe and all the necessary ingredients.