Profitability Ratios DJ's Soda Fountain Has Asked You to Help

question 26

Multiple Choice

Profitability Ratios DJ's Soda Fountain has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales = $20 million, total debt = $3 million, debt ratio = 75%, ROE = 27%. Using this information, what is DJ's ROA?

• A) .0675%
• B) 6.75%
• C) 25.00%
• D) 27.00%

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Definitions:

Hydrochloric Acid

A strong, corrosive acid that is a component of gastric juice in the stomach, aiding in digestion and sterilizing ingested food.

Acidic

Having a pH less than 7, typically described for solutions that have a higher concentration of hydrogen ions.

Given Element

A chemical element specified or identified in a particular context or situation.

Protons Only

Describes an atomic composition focusing solely on protons, the positively charged particles in an atom's nucleus, ignoring other particles.