MA-17: Measures of Performance and Financial Leverage Following are selected data from year-end financial statements of Lima Corporation for 2017 and...

2,100,000

Required:

a. Compute the following performance measurement 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.