Question

A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 17.5 percent. Sales were $1,815,000, the total debt ratio was .34, and total debt was $664,000.

What are the total assets? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Total assets            $

What is the total equity? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Total equity            $

What is the net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net income            $

What is the return on assets (ROA)? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Return on assets             %

Answer 1

ans 1	Total asset =			1952941
	total debt/Total debt ratio
	=664000/0.34
ans 2	Total equity =			1288941
	total asset - total debt
ans 3	Net income
	return on equity * equity			225565
	=17.5%*1288941
ans 4	return on asset			11.55%
	net income/Total asset
	=225565/1952941