How do you find the return on assets and the return on equity given the following?
Sales $27,000,000
Total assets 19,000,000
Total debt 6,400,000
Profit margin 8%
Net income 2,160,000
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How do you find the return on assets and the return on equity given the following?
Sales $27,000,000
Total assets 19,000,000
Total debt 6,400,000
Profit margin 8%
Net income 2,160,000
ROA = TA / NI
ROE = TE / NI
So,
ROA = 19,000,000 / 2,160,000
= 8.79
ROE = 6,400,000 / 2,160,000
= 2.96
Good Luck :)
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