Question

Profitability Ratios PJ's Ice Cream Parlor has asked you to help piece together financial information on...

Profitability Ratios PJ's Ice Cream Parlor has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales = $62 million, total debt = $22 million, debt ratio = 48%, ROE = 12.2%. Using this information, what is PJ's ROA? (Do not round intermediate steps.)

12.20%

4.22%

6.34%

10.56%

0 0
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Answer #1

6.34% Return on Assets - Net Income / Total Assets 2.907667 / 45.833333 Working Note : Debt Ratio Total Debt Total Equity = 2

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