Rick’s Travel Service has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales are $7.5 million, total debt is $3.00 million, debt ratio is 55 percent, and ROE is 17.2 percent.   Using the above information, calculate Rick’s ROA. (Round your answer to 2 decimal places.)   ROA _

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is