FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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8
The records of Milwakee sprinkler systems report net sales of 520,000 net income of 130,000 and average total assets of 360,000. Using DuPont analysis. Calculate the two ratios used for return on assets.
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Expert Solution
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Explanation -
Ratio Analysis -
The ratio is the technique used by the prospective investor or an individual or strategist to read the company information in more detailed end accurate ways.
Ratio immediately recognizes the Liquidity, Profitability, and Solvency of the company.
By using ratio analysis comparison between two companies can also be done very easily and accurately.
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