True or False: The proceeds from a bond issue should be considered in both Debt Ratio and ROA calculations.

The statement is true because the proceeds from a bond issue impact both the Debt Ratio and Return on Assets (ROA) calculations.

When bonds are issued, the proceeds represent a liability for the company, increasing its total debt. The Debt Ratio, which measures the proportion of total debt to total assets, will thus reflect this increase in debt. As the proceeds from bond issues contribute to the overall financing structure of the company, they are essential for determining how leveraged the company is, which directly relates to the Debt Ratio.

Simultaneously, the proceeds from the bond issue can also affect the company's assets if utilized effectively for investments that generate income. ROA, which assesses a company's ability to generate profit from its assets, incorporates the impact of increases in assets while also considering net income generated from those assets. Therefore, when bonds are issued, the proceeds can influence both net income and total assets, thus affecting ROA calculations.

This close relationship between the proceeds from the bond issue and the financial metrics ensures that both calculations adequately reflect the company's financial position following a bond issuance.