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Return on assets ratio and other ratios

The following data are taken from the financial statements of Mercer Company. The data are in alphabetical order. Consider balances as averages if applicable.

Accounts Payable $22,000 Net Income $48,000
Accounts Receivable $60,000 Net Sales $400,000
Total Assets $275,000 Other Current Liabilities $12,000
Cash $35,000 Salaries Payable $ 6,000
Gross Profit $190,000 Stockholders' Equity $110,000

Compute the following:
(A) Current Ratio
(B) Debt to total assets ratio
(C) Profit Margin ratio
(D) Return on assets ratio
(E) Net Working Capital

Solution Preview

The following data are taken from the financial statements of Mercer Company. The data are in alphabetical order. Consider balances as averages if applicable.

Accounts Payable ...

Solution Summary

This provides the steps to calculate the Return on assets ratio and other ratios

$2.19