a. What is its ROA? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets b. What is the return on shareholders' equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity c. If the firm has an asset turnover ratio of 18 times, what is the profit margin? (Round the final answer to 2 decimal places) Profit margin
a. What is its ROA? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on assets b. What is the return on shareholders' equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on equity c. If the firm has an asset turnover ratio of 18 times, what is the profit margin? (Round the final answer to 2 decimal places) Profit margin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bunny Hip and Hop Brewery has $1,710,000 in assets and $661,000 of debt. It reports net income of $102,000
a. What is its ROA? (Do not round intermediate calculations, Round the final answer to 2 decimal places.)
Return on assets
b. What is the return on shareholders' equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Return on equity
c. If the firm has an asset turnover ratio of 18 times, what is the profit margin? (Round the final answer to 2 decimal places)
Profit margin
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