Using the following information from a balance sheet and an income statement, compute the

(1) Profit Margin,

(2) Asset turnover,

(3) Return on assets,

(4) Debt to equity ratio, and

(5) Return on equity. (The previous year’s total assets were $200,000, and owner’s equity was $140,000.)

Total assets ........$240,000

Total liabilities ........ 60,000

Total owner’s equity ...... 180,000

Net sales .......... 260,000

Cost of goods sold ...... 140,000

Operating expenses ..... 80,000