Solution-What is the profit margin ratio used in roa

What is the profit margin ratio used in roa

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Reference no: EM131809684

Problem

Alpha Enterprises has the following comparative balance sheets and income statements

Statement of Financial Position Income Statement for the year ending December 31, X2
	Dec 31, X2	Dec 31, X1	Revenues	$100.0
Total Assets	$120	$100	Operating expenses	80.0
Total Liabilities	70	60	Interest Expense	6.0
Shareholders' equity	50	40	Income before Taxes	14.0
			Tax Expense (30%)	4.2
			Net Income	9.8

What is the Profit Margin ratio used in ROA?
0.13
0.14
0.20
0.091

Reference no: EM131809684

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What is the profit margin ratio used in roa

Reference no: EM131809684

Reference no: EM131809684

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