Question

In: Finance

Smith, Inc., has sales of $17.2 million, total assets of $16.1 million, and total debt of $7.5 million.

Smith, Inc., has sales of $17.2 million, total assets of $16.1 million, and total debt of $7.5 million. If the profit margin is 5%, what is net income? ROA? ROE? (10 Points)

(Use Excel and Excel Formulas)

Solutions

Expert Solution

NET INCOME = SALES * PROFIT MARGIN
17.2 * 5%
$ 0.86 MILLION
ROA (RETURN ON ASSETS) = NET INCOME / TOTAL ASSETS * 100
0.86 / 16.1 * 100
5.34%
ROA (RETURN ON EQUITY) = NET INCOME / TOTAL EQUITY * 100
0.86 / 8.6 * 100
10.00%
TOTAL EQUITY = TOTAL ASSETS - TOTAL DEBT
16.1 - 7.5
$ 8.6 MILLION

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Note: Please use excel 3. Smith, Inc., has sales of $17.2 million, total assets of $16.1...
Note: Please use excel 3. Smith, Inc., has sales of $17.2 million, total assets of $16.1 million, and total debt of $7.5 million. If the profit margin is 5%, what is net income? ROA? ROE? 4. Vitron Corp. has a current accounts receivable balance of $483,810. Credit sales for the year ended were $5,700,000. What is the receivables turnover? The days’ sales in receivables? 5.Beakman, Inc. has ending inventory of $400,000, and a cost of goods sold for the year...
Wood Recovery has sales of $397,000, total assets of $225,000, and total debt of $101,700 million.
Wood Recovery has sales of $397,000, total assets of $225,000, and total debt of $101,700 million. The net profit margin is 6.2 percent. What is the return on equity? Multiple Choice19.96%5.99%32.20%1.32%
1. An MNC has total assets of $ 100 million and debt of $ 20 million....
1. An MNC has total assets of $ 100 million and debt of $ 20 million. The firm's cost of pretax debt is 12 percent, and its equity financing cost is 15 percent. The MNC has a corporate tax rate of 20 percent. What is the capital cost of this company? 2. Discuss the pros and cons of an MNC that has a centralized cash manager that handles all investments and loans of all MNC affiliates versus each affiliate that...
Holly, Inc. has sales of $292,510, total assets of $420,400, a debt-equity ratio of 1.2, and...
Holly, Inc. has sales of $292,510, total assets of $420,400, a debt-equity ratio of 1.2, and a profit margin of 7.5 percent. What is the equity multiplier? 1.6 2.6 1.2 2.2 Thyme, Inc. has total assets of $72,000, a debt-equity ratio of 0.8, and net income of $7,700. What is the return on equity? 27.78 percent 24.14 percent 22.56 percent 19.25 percent Ferns, Inc. paid $14,000 in dividends and $10,300 in interest over the past year. Sales totaled $139,700 with...
Y3K, Inc., has sales of $4,500, total assets of $3,300, and a debt?equity ratio of 1.50....
Y3K, Inc., has sales of $4,500, total assets of $3,300, and a debt?equity ratio of 1.50. If its return on equity is 17 percent, what its net income? rev: 09_17_2012 $561.00 $164.56 $765.00 $224.40 $59.84
Y3K, Inc., has sales of $7,565, total assets of $3,570, and a debt–equity ratio of .43....
Y3K, Inc., has sales of $7,565, total assets of $3,570, and a debt–equity ratio of .43. Assume the return on equity is 13 percent. 1.What is the company's equity multiplier? Equity multiplier times _______ 2.What is the company's total asset turnover? Total asset turnover times _____ 3.What is the company's profit margin? Profit margin _____% 4.What is the company's net income? Net income $_______
2. The Burger Hut has sales of $29 million, total assets of $43 million, and total...
2. The Burger Hut has sales of $29 million, total assets of $43 million, and total debt of $13 million. The profit margin is 11 percent. What is the return on equity? 3. Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.3. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets? 4....
2. The Burger Hut has sales of $29 million, total assets of $43 million, and total...
2. The Burger Hut has sales of $29 million, total assets of $43 million, and total debt of $13 million. The profit margin is 11 percent. What is the return on equity? 3. Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.3. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets?
Consider the following information about Earl Grey, Inc. Total assets $250 million Total debt $110 million...
Consider the following information about Earl Grey, Inc. Total assets $250 million Total debt $110 million Preferred stock $ 35 million Common stockholders' equity $105 million Net profits after taxes $25.5 million Number of preferred stock outstanding 1.5 million shares Number of common stock outstanding 9 million shares Preferred dividends paid $2.5 per share Common dividends paid $0.70 per share Market price of the preferred stock $32.55 per share Market price of the common stock $26.00 per share Use the...
Consider the following information about Earl Grey, Inc. Total assets $250 million Total debt $110 million...
Consider the following information about Earl Grey, Inc. Total assets $250 million Total debt $110 million Preferred stock $ 35 million Common stockholders’ equity $105 million Net profits after taxes $25.5 million Number of preferred stock outstanding 1.5 million shares Number of common stock outstanding 9 million shares Preferred dividends paid $2.5 per share Common dividends paid $0.70 per share Market price of the preferred stock $32.55 per share Market price of the common stock $26.00 per share Use the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT