Answered: Southwick Company has total assets of…

Southwick Company has total assets of $40,000. It has a profit margin of 5.5 percent on sales of $100,000. If the equity multiplier is 1.5, what is its ROE?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5P: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are...

See similar textbooks

Related questions

Q: Identify which financial statement elements apply to each item described below. The first one is…

A: Identify the qualitative characteristic that is being adopted or not adopted for each…

Q: Answer this question

A: Step 1: Determine the net sales revenue.= sales revenue - sales returns - sales discounts= 350,000 -…

Q: None

A: The problem requires the determination of the asset turnover. Asset turnover is the ratio of total…

Q: Provide answer the general accounting question

A: Step 1: Define Selling and Administrative Expenses:Selling and administrative expenses of a business…

Q: Ans

A: Explanation of Tangible Asset: A tangible asset is a physical item that can be touched and seen,…

Q: Required information [The following information applies to the questions displayed below.] Brooke, a…

A: Step 1: Calculate Social Security TaxMaximum taxable earnings: $168,600Social Security tax rate:…

Q: ram

A: The after-tax cost of an expense is the amount of money spent on an expense minus the amount of the…

Q: Please solve this general accounting question

A: Step 1: Define Notes payableNotes payable are the sources of raising finance for the organization.…

Q: General Accounting question

A: Step 1: The price-earning ratio can be calculated by dividing the share price by the earnings per…

Q: General Accounting

Q: George Company uses a perpetual inventory system. During May, the following transactions and events…

A: Step 1:Journal entries:DateAccount Titles and ExplanationDebitCreditMay 13Accounts receivable$510…

Q: Identify the differences between paper-based and digital evidence. Do you believe that digital…

A: Paper-based evidence refers to physical documents such as invoices, receipts, contracts, and…

Q: Need answer please not use ai

A: We have given, Motor Selling Price = $3,834Cost Price of motor = $2,700We know that, Markup=Selling…

Q: General Accounting Question

A: Step 1: Calculate the pre-tax profit requiredStep 2: Calculate the contribution margin per unitStep…

Q: Need help with this accounting question

A: Step 1: Define Du Pont AnalysisA strength-weakness analysis aimed to identify the aspects shifting…

Q: General Accounting Question

A: The proportion of a company that is financed by non-owners can be understood by looking at its…

Q: How much pays off the principal??

A: If you have any problem let me know in comment section.

Q: Question 9.3…

A: 1. Determine the economic order quantity. To determine the Economic Order Quantity (EOQ), we can use…

Q: General Accounting

A: Step 1: Define External EquityWhen a company decides to fund a new project/ investment by equity and…

Q: General Accounting

A: Step 1: Introduction to the Equivalent Units of ProductionThe equivalent units of production are the…

Q: If a company's net income for the year is $100,000 and its total assets at the beginning of the year…

A: Step 1: Find the average total assets.= (beginning total assets + ending total assets) / 2= (500,000…

Q: Hi expart Provide answer the general accounting question

A: Step 1: Introduction to the Profitability Index MethodThe profitability index method is a capital…

Q: Give true solution for this general accounting question

A: Step 1: Define MarkupMarkup is a percentage amount added to the actual cost of a product…

Q: What is arlingtons free cash flow for the year.?

A: The Free Cash Flow (FCF) for Arlington Corporation is calculated by first determining the EBIT after…

Q: Please help me solve this accounting question

A: 1. Tables Chairs Sales Price 1,200.00 100.00 Variable manufacturing costs (768.00)…

Q: Hello tutor provide answer this accounting question not use chatgpt

A: Step 1: Define Maturity ValueThe total amount of the entire amount invested and the return earned…

Q: aano j te

A: Solution= (net income / net sales) x 100= (134,000 / 773,000) x 100= 0.173350582147477 x 100=…

Q: Don't use AI.

A: As per 26 USC 6012: Persons required to make returns of income, General RulePoint 3 & 4,Every…

Q: Company X applies MOH to jobs on the basis of machine hours used. MOH costs are expected to total…

A: .

Q: XAX Manufacturing has fixed overhead costs of $50,000 per month and variable costs of $5 per unit.…

A: To find the break-even point, we need to calculate how many units XAX Manufacturing must sell to…

Q: What is the return on equity ??

A: The problem requires the determination of the return on equity. Return on stockholder's equity or…

Q: Give true answer

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Answer with Explanation

A: Explanation of Cost: The cost of an asset refers to the amount paid to acquire it, including all…

Q: Exercise 10-5 Ramirez Company installs a computerized manufacturing machine in its factory at the…

Q: What is the amount of the net income? Accounting

A: Step 1: Define Return on Equity (ROE)Return on Equity is a useful tool for management as it allows…

Q: Answer the following in detail

A: 1. Pub's income from Sub for the years 2019, 2020, and 2021Since Pub owns 80% of Sub, calculate…

Q: In 2024, Tom and Alejandro Jackson (married filing jointly) have $210,000 of ordinary taxable income…

A: To compute Tom and Alejandro Jackson's 2024 tax liability, we will:Analyze and categorize the…

Q: Not use ai please don't

A: Step 1: Define Labor Rate VarianceThe labor rate variance arises due to the difference between the…

Q: Can you please give me correct answer?

A: The formula for computing the desired revenue to be earned is:Desired Revenue = (Total fixed cost +…

Q: Please need answer the accounting question

A: To find the amount Taraz Aina must pay right now to completely satisfy her obligation under this…

Q: The materials handling charge for ABC corp is $0.50 per pound of finished product. What is the…

A: To calculate the materials handling charge, we need to determine the total weight of the finished…

Q: Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have…

A: Steps to Solve the Problem: A) Anticipated Level of Profits for the Expected Sales VolumesStep 1:…

Q: Need help please

A: I hope this helps.

Q: What is the amount of each payment?

A: Step 1: Understand the problem We need to calculate the monthly payment for a loan with the…

Q: Provide correct answer

A: Step 1 For simple interest The formula for simple interest is:A=P(1+rt)Where:A is the amount of…

Q: Required information [The following information applies to the questions displayed below.] Shauna…

A: Danielle receives a tax basis equal to the fair market value of the assets he receives equivalent to…

Q: Here is the production data for PT AAA for March 2024. You are requested to prepare the Cost of…

A: Step 2: Define the Formula for COGSThe formula for Cost of Goods Sold (COGS) is:COGS=Beginning…

Q: Need help

A: Step 1: Define Contribution MarginContribution margin shows the incremental amount realized from…

Q: General Accounting

A: The present value of the tax shield on debt can be calculated using the following formula:PV of tax…

Q: ABC Co.'s petty cash receipts indicate the following expenditures for the end of October:…

A: The expenses mentioned in the question are all operating expenses. Office supplies, selling…

Question

100%

Give correct roe for this accounting question

Southwick Company has total assets of
$40,000. It has a profit margin of 5.5 percent
on sales of $100,000. If the equity multiplier is
1.5, what is its ROE?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Face Mask Company has a Total Sales of P100,000,000. Its total assets is 50,000,000 and a profit margin of 2%. What is the ROE if the equity multiplier is 2.0?
Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity is $900,000. What is the equity multiplier? Return on equity? Netincome?
ROE Needham Pharmaceuticals has a profit margin of 3.5% and an equity multiplier of 1.5. Its sales are $100 million and it has total assets of $60 million. What is its Return on Equity (ROE)? Round your answer to two decimal places.
If Rooters, Inc., has an equity multiplier of 1.90, total asset turnover of 1.20, and a profit margin of 8 percent, what is its ROE?
If Roten Rooters, Inc., has an equity multiplier of 1.27, total asset turnover of 1.20, and a profit margin of 3.5 percent, what is its ROE?
Bowsman Fried Chicken Company has a debt-equity ratio of 0.80. Return on assets is 7.9%, and total equity is $480,000. What is the equity multiplier? Net income? Return on equity?
Gardial & Son has an ROA of 11%, a 4% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier? Do not round intermediate calculations. Round your answers to two decimal places.
Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 1.8. Its sales are $130 million and it has total assets of $50 million. What is its return on equity (ROE)? Do not round intermediate calculations. Round your answer to two decimal places
DTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?
Henderson’s Hardware has an ROA of 11%, a 6% profit margin, andan ROE of 23%. What is its total assets turnover? What is its equity multiplier?
Gardial & Son has an ROA of 12%, a 4% profit margin, and a return on equity equal to 11%. What is the company's total assets turnover? Round your answer to two decimal places. What is the firm's equity multiplier? Round your answer to two decimal places.
What is the return on equity ??