Highland Enterprises reports the following relationships: Sales/Total Assets: 2.0x Return on Assets (ROA): 5% Return on Equity (ROE): 10% What is the profit margin and the debt ratio for Highland Enterprises?

Highland Enterprises reports the following relationships: Sales/Total Assets: 2.0x Return on Assets (ROA): 5% Return on Equity (ROE): 10% What is the profit margin and the debt ratio for Highland Enterprises?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...

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Question

Please need help with this accounting problem

Highland Enterprises reports the following relationships:
Sales/Total Assets: 2.0x
Return on Assets (ROA): 5%
Return on Equity (ROE): 10%
What is the profit margin and the debt ratio for Highland Enterprises?

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