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Alpha Enterprises has the following comparative balance sheets and income statements

Alpha Enterprises has the following comparative balance sheets and income statements

Statement of Financial Position

Income Statement
for the year ending
December 31, X2

Dec 31, X2
Dec 31, X1

Revenues
 $100.0

Total Assets
 $120
 $100

Operating expenses
 80.0

Total Liabilities
 70
 60

Interest Expense
 6.0

Shareholders’ equity
 50
 40

Income before Taxes
 14.0

Tax Expense (30%)
 4.2

Net Income
 9.8

What is the Profit Margin ratio (page 190) used in ROA?

0.13

0.14

0.20

0.091

 
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