For the year ended December 31, 2010, Ebanks, Inc , earned an ROI of 12 Sales for the year were $96 million, and average asset turnover was 2 4 Average owners equity was $32 million Required a Calculate Ebanks, Inc s margin and net income b Calculate Ebanks, Inc s return on equity ...

a Margin 24 Turnover 12 ROI Margin ...

For the year ended December 31, 2010, Ebanks, Inc., earned an ROI of 12%. Sales for the

Question:

For the year ended December 31, 2010, Ebanks, Inc., earned an ROI of 12%. Sales for the year were $96 million, and average was 2.4. Average owners’ equity was $32 million.

Required:
a. Calculate Ebanks, Inc.’s margin and net income.
b. Calculate Ebanks, Inc.’s return on equity.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.