### Financial Analysis Exercise**Avalanche Inc.** reported the following financial data:- **Sales:** $1,070,000- **Total assets at the end of the year:** $2,500,000 - Of which $775,000 is property, plant, and equipment- **Total assets at the beginning of the year:** $2,300,000- **Net income:** $515,000- **Stockholders’ equity at the end of the year:** $1,500,000- **Stockholders’ equity at the beginning of the year:** $1,510,000**Questions:**1. **What is the company's asset turnover ratio?** ______________________2. **What is their Return on Investment (ROI)?** ______________________3. **What is their Return on Equity (ROE)?** ______________________**Explanation:**- **Asset Turnover Ratio:** Measures the efficiency of a company's use of its assets in generating sales revenue. Calculated as Sales/((Total assets at beginning + Total assets at end) / 2).- **Return on Investment (ROI):** Indicates the percentage of profit earned in relation to investment. Calculated as (Net Income / Average Total Assets).- **Return on Equity (ROE):** Reflects a firm's ability to generate profits from its shareholders' equity. Calculated as (Net Income / Average Stockholders' Equity).Use this information to derive insights into the operational efficiency and financial performance of Avalanche Inc.

Name: ### Financial Analysis Exercise**Avalanche Inc.** reported the follow
Uploaded: 2022-11-29T14:11:17.000Z
Channel: Bartleby
Description: ### Financial Analysis Exercise**Avalanche Inc.** reported the following financial data:- **Sales:** $1,070,000- **Total assets at the end of the year:** $2,500,000 - Of which $775,000 is property, plant, and equipment- **Total assets at the beginn