Reference no: EM132784815
Questions -
Q1. Step Up Ladders Company provides the following financial information:
Income from operations $400,000
Interest expense 46,000
Gains/(losses) on sale of equipment 2,500
Net income 351,500
Total assets at Jan. 1 2,600,000
Total assets at Dec .31 3,200,000
Calculate return on investment based on the information given above. (Round your answer to two decimal places.)
A. 15.38%
B. 12.50%
C. 12.12%
D. 13.79%
Q2. Accelerated Logistics provides the following information:
Operating income $1,500,000
Net sales $15,000,000
Average total assets $2,000,000
Management's target rate of return 25%
What is the company's profit margin ratio? (Round your answer to two decimal places.)
A. 75.00%
B. 1.10%
C. 10.00%
D. 13.33%