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FinanceQ&A LibraryCream of Tomato Company has the following data available.Net income = $250,000Sales = $2.5 millionTotal asset turnover = 3Equity multiplier = 2.5Cream of Tomato does not have any preferred stock outstanding. Note that the equitymultiplier is defined as total assets to equity. Calculate the return on assets and return onequity for Cream of Tomato.Question

Cream of Tomato Company has the following data available.

Net income = $250,000

Sales = $2.5 million

Total asset turnover = 3

Equity multiplier = 2.5

Cream of Tomato does not have any preferred stock outstanding. Note that the equity

multiplier is defined as total assets to equity. Calculate the return on assets and return on

equity for Cream of Tomato.

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