Answer:
Return on Investment
60,000/345,000 = .173913043
net profit margin:
60,000/786,000 = 0.076335877
return on assets
60,000/345,000 = .173913043
assets turnover
sales/assets = 2.27826087
Explanation:
income from operation 60,000
invested assets 345,000
sales 786,000
net profit margin:
60,000/786,000 = 0.076335877
return on assets
60,000/345,000 = .173913043
assets turnover
sales/assets = 2.27826087
![ROE = Profit.Margin\times AssetsTO\times Leverage\\\\ROE = Profit.Margin\times AssetsTO\times \frac{Assets}{Equity}](https://tex.z-dn.net/?f=ROE%20%3D%20Profit.Margin%5Ctimes%20AssetsTO%5Ctimes%20Leverage%5C%5C%5C%5CROE%20%3D%20Profit.Margin%5Ctimes%20AssetsTO%5Ctimes%20%5Cfrac%7BAssets%7D%7BEquity%7D)
.173913043 = 0.076335877 x 2.27826087 x 345,000/Equity
Equity = 345,000
Return on Investment
60,000/345,000 = .173913043