Sales for 1991 (base year) were $800,000 and the year-end total asset turnover ratio was 1.6. With which of the following statements would you agree?
A.) The total assets index analysis value, assuming $1.05 million of assets at the end of 2000, would be 210.
B.) The gross profit margin and the net profit margin are examples of balance sheet ratios.
C.) If total debt in 2000 was $420,000, the debt-to-equity ratio in 2000 would be 84%.
D.) Index analysis supplements the common-size analysis by comparing key industry ratios.
Answer: A