Cream of Tomato Company has the following data available. Net income = $250,000 Sales = $2.5 million Total asset turnover = 3 Equity multiplier = 2.5 Cream of Tomato does not have any preferred stock outstanding. Note that the equity multiplier is defined as total assets to equity. Calculate the return on assets and return on equity for Cream of Tomato.

Cream of Tomato Company has the following data available. Net income = $250,000 Sales = $2.5 million Total asset turnover = 3 Equity multiplier = 2.5 Cream of Tomato does not have any preferred stock outstanding. Note that the equity multiplier is defined as total assets to equity. Calculate the return on assets and return on equity for Cream of Tomato.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 6CP: The average liabilities, average stockholders' equity, and average total assets are as follows: 1....

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