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Ratio analysis

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Emmit's Widget Company has sales of $56 million, total assets of $40 million, and total debt of $16 million. If the profit margin is 12 percent, what is:

Net income? ______ ROE? _______ ROA? _______

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Solution Summary

Solution describes how to calculate net income, Roe and ROA when information about sales ,total assets, total debts and profit margin is given.

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Net income = Sales *profit margin =$56 millions *12% =$6.72 millions

ROE (Return on equity )= Earning available for common ...

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