Hello, can you please help with the below. Please include step by step work and...
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Hello, can you please help with the below. Please include step by step work and include part B with detailed explanation
Following are selected data from year-end financial statements of Lima Corporation for 2017-2016
| 2017 | 2016 | ||
| Total assets | $ 4,420,000.00 | $ 393,000.00 | |
| Interest expense | $69,000 | $61,000 | |
| Long-term liabilities | $832,000 | $845,000 | |
| Net income | $452,875 | $411,900 | |
| sales | $5,218,750 | $4,454,700 | |
| Stockholder equity | $2,428,750 | $2,100,000 | |
a.Compute the following performance measurements ratios for 2017 (ignore income taxes)
| 1 | Asset turnover | |
| 2 | Return on sales | |
| 3 | Return on assets | |
| 4 | Return on equity | |
b) is Lima Company using financial leverage? if so, is the leverage favorable or unfavorable? Explain
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