For the year ended December 31, 2016, Settles. Inc., earned an ROI of 14.7%. Sales for the

Question:

For the year ended December 31, 2016, Settles. Inc., earned an ROI of 14.7%. Sales for the year were $140 million, and average asset turnover was 3.5. Average stockholders' equity was $30 million.

Required:

a. Calculate Settles, Inc.'s margin and net income.

b. Calculate Settles, 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.