Practice Activity Answer SheetProfit Margin: 10%; Rationale: $100,000/$1,000,000 Return on Assets: 10%; Rationale: $100,000/$1,000,000 Receivables Turnover: 10; Rationale: $1,000,000/ $100,000 Inventory Turnover: 10; Rationale: $1,000,000/$100,000 Fixed Asset Turnover: 5; Rationale: $1,000,000/$200,000 Total Asset Turnover: 1; Rationale: $1,000,000/$1,000,000 Current Ratio: 1.33; Rationale: $400,000/$300,000 Debt to Total Assets: .5; Rationale: $500,000/$1,000,000 Times interest Earned: 6; Rationale: $150,000/$25,000 |