Calculate the net profit margin for salza

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The Salza Technology Corporation successfully increased its "top line" sales from $375,000 in 2015 to $450,000 in 2016. Net income also increased as did the venture's total assets. You have been asked to compare the financial performance between the two years.

Question A. Calculate the net profit margin and the sales-to-total-assets ratio for Salza for 2016 using average total assets. Also calculate the return on total assets in 2016 using average total assets.

Question B. Calculate the ratios in the ROA model for both 2015 and 2016 using year-end total assets. Comment on any financial ratio differences.

Question C. Expand the 2016 ROA model discussed in Part A into an ROE model that includes financial leverage as measured by the equity multiplier. Use average owners' or stockholders' equity in your calculation.

Question D. Expand the 2015 and 2016 ROA model calculations in Part B into ROE models based on year-end owners' or stockholders' equity amounts

Reference no: EM132485281

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