PJ's Ice Cream Parlour Has Asked You to Help Piece

Multiple Choice

PJ's Ice Cream Parlour has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales = $50 million, total debt = $20 million, debt ratio = 50 percent, and ROE = 12 percent. Using this information, what is PJ's ROA?

A) 4 percent
B) 6 percent
C) 10 percent
D) 12 percent