profit margin= net income/net sales
current assets/current liabilities
total liabilities/total assets
return on assets
return on assets= net income/average total assets
capital (common stock) and retained earnings.
retained earnings encompasses...
dividends (-) revenues (+) and expenses (-)
assets, dr. liabilities, cr. common stock, cr. dividends, dr. revenues, cr. expenses, dr.
retained earnings= revenues-expenses. positive: net income. negative: net loss.