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2. 500 points value Y3K, Inc., has sales of $6,229, total assets of $2,845, and a debt-equity ratio of 1.60. If its return on

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Answer #1

Ans $ 131.31

DEBT /EQUITY = 1.6
DEBT = 1.6 * EQUITY
TOTAL ASSET = DEBT + EQUITY
2845 = 1.6 EQUITY + EQUITY
2845 = 2.6 EQUITY
EQUITY = 2845 / 2.6
EQUITY = 1094.23
RETURN ON EQUITY = 12% ON EQUITY
12% * 1094.23
131.31
NET INCOME = $ 131.31
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