Toronto Skaters Company Earned a Net Profit Margin of 6

question 72

Multiple Choice

Toronto Skaters Company earned a net profit margin of 6% in 2022.Their turnover ratio is 5 and their leverage ratio is 3.The return on equity (ROE) earned by Toronto Skaters in 2022 is:

• A)0.90%
• B)9%
• C)10%
• D)90%

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Definitions:

Activity

Any specific task, action, or series of actions undertaken, often carrying out a particular function or purpose.

Negative Cash Flow

A situation where a company's outflows of cash exceed its inflows over a given period, indicating potential financial trouble.

Cash Turnover Ratio

A financial metric that measures how efficiently a company generates sales from its cash on hand.

Profit

The financial gain realized when the revenue from business operations and sales exceeds the expenses, taxes, and costs of producing and selling goods or services.