Financial Statement Analysis
Quick practice
Question 1 of 5
The following data pertains to a company's common-size financial statements.
Current assets 40%
Total debt 40%
Net income 16%
Total assets $2,000
Sales $1,500
Total asset turnover ratio 0.75
The firm has no preferred stock in its capital structure.
The company's after-tax return on common equity is closest to
15%
25%
20%
Concepts
Inventories
Financial Analysis Techniques
Understanding Income Statements
Understanding Balance Sheets
Understanding Cash Flow Statements
Long-Lived Assets
Income Taxes
Non-Current (Long-Term) Liabilities
Financial Reporting Quality
Applications of Financial Statement Analysis
Introduction to Financial Statement Analysis
Financial Reporting Standards
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