Need help in solving these problems:
2. Explain in problem 1 why return on equity was so much higher than return on assets.© BrainMass Inc. brainmass.com June 3, 2020, 10:17 pm ad1c9bdddf
1. Given the following financial data: net income/sales = 5%; sales/total assets = 2.5; debt/total assets = 60 percent; compute:
a. Return on assets= Net income/Total assets
= net income/sales * sales/total assets ...
The response describes the steps to compute the Return on assets.