Chapter 14 Practice Test Question 16 Ratios Using the firm's data provided below explain why the firm's ROA is less than the industry average of 57% given that the industry average asset turnover is 1.32. Sales EBIT Interest Expense Assets Equity Net Profit $160 (mill) $ 65 $ 15 $125 $ 40 $ 40 Multiple Choice The firm is not generating enough sales from assets and has too high operating costs. The firm is not generating enough sales from assets and has too much debt. The firm uses less debt than the industry. The firm has too high an interest burden ratio