1) profit margin = net income / sale
= 20000 / 45000
= 0.444
2) total asset turnover = sales / total assets
= 45000 / 46000
= 0.978
3) Equity multiplier = total assets / Total equity
= 46000 / 20000
= 2.3
4) Return on equity = net income / Total equity
= 20000 / 20000
= 1
5) higher profit margin , the higher net income,the greater will be ROE. Greater ROE means company is reinvesting its profit into its buisness to generate higher return
Intro Samsung has sales of $45,000 and a net income of $20,000. Total assets are $46,000...
Intro Epson expects the following financial data during the coming year. • Assets: $120,000 • Total debt ratio = Debt/Assets (book values): 30% EBIT: $49,000 • Interest rate: 6% • Tax rate: 34% JB Attempt 1/10 for 10 pts. Part 1 What is the firm's expected ROE? 3+ decimals Submit Intro Use the following information to answer the questions: Assets Cash Marketable securities Accounts receivable Inventory Current assets Machines 12,000 2,000 6,000 33,000 53,000 34,000 80,000 114,000 167,000 Liabilities and...
1. Common Stock = 100,000. Accumulated Retained Earnings = 50,000. Total Assets = 400,000. Net income = 20,000. What is Return on Assets? (Express your answer as a percentage) ____________________ 2. Assume Days Sales Outstanding is 30 days and Sales are 8,000,000. What are Accounts Receivable? A. $800,000 B. $543,762 C. $657,534 D. $742,387 3. Assume the Profit Margin is 3%. Total Asset Turnover is 3x and the Equity Multiplier is 1.5. What is Return on Assets? A. 13.5% B....
Manufacturer A has a profit margin of 2%, a total asset turnover of 1.8 and an equity multiplier of 5.1. Manufacturer B has a profit margin of 2.5%, a total asset turnover of 1.3 and an equity multiplier of 4.6. How much total asset turnover should Manufacturer B have to match Manufacturer' A's ROE ion ○ 2.20 O 1.28 O 3.19 1.6
Manufacturer A has a profit margin of 2%, a total asset turnover of 1.8 and an equity multiplier of 5.1. Manufacturer B has a profit margin of 2.5%, a total asset turnover of 1.3 and an equity multiplier of 4.6. How much total asset turnover should Manufacturer B have to match Manufacturer' A's ROE 1.28 O3.19 O 2.20 O 1.6
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
The return on assets (ROA) model measures: Group of answer choices net profit divided by total assets multiplied by the asset turnover net profit margin times the equity multiplier net profit margin times asset turnover revenues divided by net profit times the asset turnover
The 2021 income statement for Anderson TV and Appliance reported net sales of $360,000 and net income of $85,000. Average total assets for 2021 was $800,000. Shareholders’ equity at the beginning of the year was $500,000 and $40,000 was paid to shareholders as dividends. There were no other shareholders’ equity transactions that occurred during the year. Show the DuPont framework's calculation of the three components of the 2021 return on equity for Anderson TV and Appliance. Profit Margin (%) Choose...
Intro LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid $5.2 million in interest. The company also paid out $51 million in dividends, while the addition to retained earnings increased equity by 80%. The average tax rate was 34% and the average interest rate on the company's debt was 6.7%. The payout ratio was 30%. Part 1 What was the profit margin? E Attempt 1/10 for 12 pts. 3+ decimals Submit Attempt 1/10 for...
Intro Use the following information to answer the questions: Assets Cash Marketable securities Accounts receivable Inventory Current assets Machines Real estate Fixed assets Total assets 9,000 2,000 6,000 24,000 41,000 34,000 80,000 114,000 155,000 Liabilities and Equity Accounts payable 17,000 Notes payable 6,000 Current liabilities 23,000 Long-term debt 95,000 Total liabilities 118,000 Paid-in capital 20,000 Retained earnings 17,000 Equity 37,000 Total liab. & equity 155,000 - Attempt 1/10 for 10 pts. Part 1 What is the current ratio? 2+ decimals...
Question 59 1 pts Precision Aviation had a profit margin of 8.00%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE? 0 22.68% O 16.63% O 20.95% 23.76% O 21.60% Previous Nexta 名0 00 4 FS F7 F8 8