Question: The Purple Martin has annual sales of $4,500; a total debt of $1,240; total equity of $2,500; and, a profit margin of 6%. What is the return on assets? a) 21.77% b) 7.22% c) 6.00% d) 10.80% e) 8.82%
Question: The Purple Martin has annual sales of $4,500; a total debt of $1,240; total equity of $2,500; and, a profit margin of 6%. What is the return on assets? a) 21.77% b) 7.22% c) 6.00% d) 10.80% e) 8.82%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
The Purple Martin has annual sales of $4,500; a total debt of
$1,240; total equity of $2,500; and, a profit margin of 6%. What
is the return on assets?
a) 21.77%
b) 7.22%
c) 6.00%
d) 10.80%
e) 8.82%
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