A company has $200 billion in sales and $10 billion of net income. Its total assets are

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A company has $200 billion in sales and $10 billion of net income. Its total assets are $100 billion, financed half by debt and half by common equity.

(A) What is its profit margin?

(B) what is its ROA?

C) what is its ROE?

D) Would ROA increase if the firm used less leverage? Would ROE increase if the firm used less leverage?

A firm has $180 million in annual sales; $40 million of inventory and $60 million of accounts receivable. What is the inventor turnover ratio?

Related Book For answer-question

Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Posted Date: May 13, 2023 04:42 AM

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A company has $200 billion in sales and $10 billion of net income. Its total assets are

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A Profit margin Profit margin Net income Sales 100 10 billion 200 billion 100 5 B ROA Return on asse... View the full answer

Advanced Accounting

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