Prime Innovations Inc. provided the following financial data: • Total Assets: $1,200,000 Total Liabilities: $700,000 • Total Equity: $500,000 Net Income: $200,000 Revenue: $900,000 Calculate the following ratios: a) Debt-to-equity ratio b) Return on assets (ROA) c) Profit margin

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
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Prime Innovations Inc. provided the following financial data:
• Total Assets: $1,200,000
Total Liabilities: $700,000
• Total Equity: $500,000
Net Income: $200,000
Revenue: $900,000
Calculate the following ratios:
a) Debt-to-equity ratio
b) Return on assets (ROA)
c) Profit margin
Transcribed Image Text:Prime Innovations Inc. provided the following financial data: • Total Assets: $1,200,000 Total Liabilities: $700,000 • Total Equity: $500,000 Net Income: $200,000 Revenue: $900,000 Calculate the following ratios: a) Debt-to-equity ratio b) Return on assets (ROA) c) Profit margin
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