Easter Egg and Poultry Company has $1,760,000 in assets and $608,000 of debt. It reports net income of $100,000.       a. What is the firm’s return on assets? (Enter your answer as a percent rounded to 2 decimal places.)        b. What is its return on stockholders’ equity? (Enter your answer as a percent rounded to 2 decimal places.)            c. If the firm has an asset turnover ratio of 3.5 times, what is the profit margin (return on sales)? (Enter your answer as a percent rounded to 2 decimal places.)

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Easter Egg and Poultry Company has $1,760,000 in assets and $608,000 of debt. It reports net income of $100,000. 
 
  
a. What is the firm’s return on assets(Enter your answer as a percent rounded to 2 decimal places.)
  

 

 




b. What is its return on stockholders’ equity(Enter your answer as a percent rounded to 2 decimal places.)
  

 

 

 

 


c. If the firm has an asset turnover ratio of 3.5 times, what is the profit margin (return on sales)? (Enter your answer as a percent rounded to 2 decimal places.)
 

 

 

 

 

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