Question:1 Rafi Company has the following data: Total Asset/ Sales 1.5 Times ROA 3% ROE 5% Calculate the net profit margin and debt ratio. Question: 2 Raihan Company has the following data: $500,000 debt 10% interest annually $2 million sales 30% tax rate 5% net profit margin on sales Calculate the TIE ratio.
Question:1 Rafi Company has the following data: Total Asset/ Sales 1.5 Times ROA 3% ROE 5% Calculate the net profit margin and debt ratio. Question: 2 Raihan Company has the following data: $500,000 debt 10% interest annually $2 million sales 30% tax rate 5% net profit margin on sales Calculate the TIE ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question:1
Rafi Company has the following data:
Total Asset/ Sales 1.5 Times
ROA 3%
ROE 5%
Calculate the net profit margin and debt ratio.
Question: 2
Raihan Company has the following data:
$500,000 debt
10% interest annually
$2 million sales
30% tax rate
5% net profit margin on sales
Calculate the TIE ratio.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9405d880-be2e-469f-a22d-890ce1869c57%2F3c43ce41-4c07-4883-a790-153cf919d9ad%2Ftmb3mme_processed.png&w=3840&q=75)
Transcribed Image Text:Question:1
Rafi Company has the following data:
Total Asset/ Sales 1.5 Times
ROA 3%
ROE 5%
Calculate the net profit margin and debt ratio.
Question: 2
Raihan Company has the following data:
$500,000 debt
10% interest annually
$2 million sales
30% tax rate
5% net profit margin on sales
Calculate the TIE ratio.
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