Profitability Ratios
$200,000 $4,000,000. Net income sales. Net income Total assets. $200,000 $1,600,000. Net income Sales. Sales Total assets. Net income Stockholders’ equity. $200,000 $1,000,000. Return on assets (investment) (1 – Debt/Assets). 0.125 1 – 0.375. 0.10 1 – 0.33. T 3-3.
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