Balance sheet into two summary measures of profitability

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Reference no: EM131566201

1. The DuPont system merges the income statement and balance sheet into two summary measures of profitability

A. net profit margin and return on total assets.

B. net profit margin and return on equity.

C. return on total assets and return on equity.

D. net profit margin and price/earning ratio.

2. A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and total liabilities of $750,000 has a return on equity of _____. .

A. 20 percent.

B. 15 percent.

C. 3 percent.

D. 4 percent.

3. The ________ ratio measures the proportion of total assets financed by the firm's creditors.

A. total asset turnover

B. fixed asset turnover

C. current

D. debt

Reference no: EM131566201

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