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Lunatic Solutions has annual sales of $1,200,000, total debt of $300,000, total equity of $700,000, and a profit margin of 5.25 percent. What is the return on assets (ROA)?

Lunatic Solutions has annual sales of $1,200,000, total debt of $300,000, total equity of $700,000, and a profit margin of 5.25 percent. What is the return on assets (ROA)?

Intermediate Financial Management (MindTap Course List)
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 6P
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Lunatic Solutions has annual sales of $1,200,000, total debt of $300,000, total equity of $700,000, and a profit margin of 5.25 percent. What is the return on assets (ROA)?
Transcribed Image Text:Lunatic Solutions has annual sales of $1,200,000, total debt of $300,000, total equity of $700,000, and a profit margin of 5.25 percent. What is the return on assets (ROA)?
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