Question

Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover is 1.2. What is the profit margin? Multiple Choice 4.82 percent 7.31 percent 6.58 percent 5.23 percent 5.67 percent

Answer 1

Page! Solution : Question la What is the Profit Margin? Step!: Cekulation of Debt Debt- Equity Ratio = Debt 0.68 Debt $358,200 Debt $358,200 X 0.68 Debt $ 243,576 Step 2: Calculation of Total Assets Total Assets $243,576+ $358,200 Total Assets =$601,776 Debt + Equity Step 3 : Cakulation of 아 Total Asset Turnover Revenue Revenue Total Assets -

Page 2 1.2 Revenue $601,776 Revenue 1.2 X $ 601,776 Revenue $722,131.20 Main Step / Answer & Calculation of Peopit Margeis Profit Mougin = Met Income Revenue Xloo $ 47,500 Xloo $722, 131.20 Profit Mergien z -6.58 % (percent) Answer : Aflim 3:16.58 percent > Paljit Martin

Pale? Questia 2: What is the Current Rates ? Step Cakulation of Current Assets Current Assets = Total Assets as Met Fixed Assets $537,800 6) $412,400 Current Assets $125,400 Step 2: 2: Catulation of current liabilities Current Liabilities Total Debt - Long Team Debt $388,700 (-) $323,400 Current Liabilities = $64,800 Main Step / Answer: Calculation of Current Ratio Current Ratio Current Assets & Current Liabilities $125,400 $ $64.800 Current Ratio 1.94 = Answer & Current Ratis 1.94 - Option