Prime Innovations Inc. provided the following financial data: Total Assets: $1,000,000 Total Liabilities: $600,000 Total Equity: $400,000 • Net Income: $160,000 . • Revenue: $750,000 Calculate the following ratios: a) Debt-to-equity ratio b) Return on assets (ROA) c) Profit margin
Prime Innovations Inc. provided the following financial data: Total Assets: $1,000,000 Total Liabilities: $600,000 Total Equity: $400,000 • Net Income: $160,000 . • Revenue: $750,000 Calculate the following ratios: a) Debt-to-equity ratio b) Return on assets (ROA) c) Profit margin
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Sub. General accounting
Transcribed Image Text:Prime Innovations Inc. provided the following financial data:
Total Assets: $1,000,000
Total Liabilities: $600,000
Total Equity: $400,000
• Net Income: $160,000
.
• Revenue: $750,000
Calculate the following ratios:
a) Debt-to-equity ratio
b) Return on assets (ROA)
c) Profit margin
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