I'm stuck on this one:

Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000

A. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales).



I know to figure profit margin, you take net income and divide it by sales, but with the information given, I am stuck on how to determine the sales in order to plug it into the equation. I feel like the answer is so simple, I'm just not seeing it.

asset turnover ratio = REVENUE / TOTAL ASSETS
2.5 = REVENUE / 2,000,000
REVENUE = 2.5 x 2,000,000
REVENUE = 5,000,000

Return on Sales = IBIT / Sales
Returns on Sales = 200,000 / 5,000,000
ROS = 4%