Question: 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

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.

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