An Analyst Gathered the Following Data for a Company Based Only on the Information Above, the Most Appropriate Conclusion

question 46

Multiple Choice

An analyst gathered the following data for a company: $\begin{array}{lccc}&2013&2014&2015\\\text { Sales } & \$ 5,000,000 & \$ 4,900,000 & \$ 4,770,000 \\\text { Net assets } & \$ 1,630,000 & \$ 1,625,000 & \$ 1,623,000 \\\text { ROE } & 9.8 \% & 10.0 \% & 11.2^{\circ} \% \\\text { Total asset turnover } & 2.0 & 2.1 & 2.2 \\\text { Gross margin } & 33.0 \% & 33.6 \% & 34.2 \%\end{array}$ Based only on the information above, the most appropriate conclusion is that:

• A)the company's net profit margin and debt levels have decreased.
• B)the company's net profit margin and debt levels have increased.
• C)the company's net profit margin has decreased but debt levels have increased.
• D)the company's net profit margin has increased and it has more liquidity.

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