MBA 5010 Week 8 Assignment (Rev 2) The weekly assignments are intended to be completed individually. It is important in an online program that you pay careful attention to when it is and is not appropriate to work with peers. Misunderstandings can have significant consequences. By submitting this assignment, you are attesting that you completed this work without assistance from another current or former student of this class. Exceptions can be made for tutors, but only with prior consent from your instructor. Your answer will be evaluated based on correctness, completeness, and clarity. Be attentive to your writing. You have until midnight CST Sunday to submit both parts of this assignment. Part A (25 points) Based on the balance sheet and income statement for Tonka Trucking LLC, calculate the following ratios: Question 1 - Total Asset Turnover Respond here Question 2 - Gross Profit Margin Respond here Question 3 - Debt to Asset Ratio Respond here Question 4 - Net Profit Margin Respond here Question 5 - Calculate and then explain Tonka's unusually high Return on Equity. Respond here Tonka Trucking LLC - Balance Sheet Assets Current Assets Cash $50,000 Accounts Receivable Inventory $40,000 $10,000 $100,000 Total Current Assets Fixed Assets Gross Equipment $500,000 Accumulated Depreciation ($200,000) Net Equipment Total Fixed Assets $300,000 $300,000 $400,000 Total Assets Liabilities and Owners Equity Current Liabilities Accounts Payable Total Current Liabilities $50,000 $50,000 Long-term Liabilities Long-term Debt Total Long-term Liabilities $50,000 $50,000 $100,000 Total Liabilities Owner's Equity Common Stock (1,000 shares) Retained Earnings Total Owner's Equity $100,000 $200,000 $300,000 Total Liabilities and Owner's Equity $400.000 Tonka Trucking LLC Income Statement Revenue $400,000 ($50,000) Cost of Goods Sold Gross Profit $350,000 ($100,000) Selling, General, and Administrative Expenses Depreciation Expense Earnings Before Interest and Taxes (EBIT) ($50,000) $200,000 Interest Expense Income Tax Expense ($50,000) ($40,000) Net Income $110.000