Here's my question... for the year ending December 31, 2009 Ebanks Inc, earned an ROI of 12%. Sales for the year $96 million, and average asset turnover was 2.4 Average owners' equity was $32 million.

Calculate Ebanks, Inc margin and net income
Calculate Ebanks, Inc's return on equity

Funny, I am looking for help with this same problem. Any luck with how to arrive at the answer?

We'd appreciate it if you start your own thread for your own post instead of hijacking another one.

These types of problems can be solved by writing out the extended ROI equation, and separately the two individual parts of it (profit margin and turnover). Then insert everything given, including the answer to them. Then you work your way backwards to whatever is missing.

e.g. you know that ROI is 12%. So margin x turnover = .12. Etc. filling in what you have and working towards what you don't have.