Here is all of the the entries i\'ve made and they are all correct. I\'m just mi

Question

Here is all of the the entries i've made and they are all correct. I'm just missing the ratios. I've provided all of the information from the problem to be able to do the ratios. I'm having trouble with them if anyone can help me out that would be great.

TNT Fireworks Trial Balance January 31, 2018 Account Title Debit Credit Cash Accounts receivable Allowance for uncollectible accounts Note receivable Interest receivable Inventory Land Equipment Accumulated depreciation Accounts payable Salaries pavable Income tax payable Common stock Retained earnings Sales revenue Interest revenue Cost of goods sold Depreciation expense Salaries expense Utilities expense Bad debt expense Income tax expense Total 5,400 223,000 8,100 12,000 50 4,200 155,000 19,500 300 88,200 32,600 9,000 220,000 50,000 220,000 50 115,000 300 62,400 16,500 5,900 9,000 628,250 $ 628,250 previous next

Explanation / Answer

(a) Return on Assets Ratio =

10950 x 100 / 410750 = 2.66 %

Company is more profitable, this statement is true.

(b) Profit Margin =

10950 x 100 / 220000 = 4.98%

The company is more efficient at converting sales to profit, this statement is true.

(C) Assets Turnover Ratio =

220000 x 100 / 410750 = 0.536 times

The company is more efficient at revenues with its assets, this statement is true.

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