Chapter 5

The profit margin on sales is low; it indicates that expenses are too high or that prices are too low or both. The poor return on total assets is directly attributable to the low profit margin on sales and the low fixed asset turnover. CHAPTER 4. LEVERAGE AND RISK ANALYSIS. 4-1. 4-2. 4-3 (a) All Common Stock All Debt. EBIT $2,400 $2,400 ................
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