EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 18PROB
Summary Introduction
FDS’s total assets are $100,000,
Return on assets is used to measure how much the firm profitable with related to firm’s total assets.
Return on equity is used to measure the financial performance that the owners of common stock of a company receive on their shareholdings.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of $38,750. What is the company’s return on equity?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Martinez, Inc., has a total debt ratio of .65, total debt of $345,000, and net income of
$31,280
Required:
What is the company's return on equity? (Do not round intermediate calculations
Round your answer to 2 decimal places (e.g., 32.16).)
Return on equity
The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of 47 and a current
ratio of 1.36. Current liabilities are $2,440, sales are $10,600, profit margin is 12 percent, and ROE is 17 percent. What is the amount of
the firm's net fixed assets?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Net fixed assets
Knowledge Booster
Similar questions
- The Rossdale Company has a ratio of long-term debt to long-term debt plus equity of .34 and a current ratio of 1.29. Current liabilities are $1,450, sales are $7,380, profit margin is 8.1 percent, and ROE is 14.3 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardEaster Egg and Poultry Company has $1,700,000 in assets and $681,000 of debt. It reports net income of $148,000. a. What is the firm's return on assets? Note: Enter your answer as a percent rounded to 2 decimal places. Return on assets b. What is its return on stockholders' equity? Note: Enter your answer as a percent rounded to 2 decimal places. Return on equity ......... Profit margin % c. If the firm has an asset turnover ratio of 1 times, what is the profit margin (return on sales)? Note: Enter your answer as a percent rounded to 2 decimal places. % %arrow_forwardY3K, Incorporated, has sales of $6,269, total assets of $2,885, and a debt-equity ratio of 1.80. If its return on equity is 12 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net incomearrow_forward
- The Mikado Company has a ratio of long-term debt to long-term debt plus equity of .32 and a current ratio of 1.8. Current liabilities are $880, sales are $6,300, profit margin is 8.9 percent, and ROE is 19.3 percent. What is the amount of the firm's net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net fixed assetsarrow_forwardAssume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 3% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %arrow_forwardThe Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .34 and a current ratio of 1.6. Current liabilities are $900, sales are $6,320, profit margin is 9.1 percent, and ROE is 19.5 percent. What is the amount of the firm's net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net fixed assetsarrow_forward
- Grey Wolf, Inc., has current assets of $2,090, net fixed assets of $9,830, current liabilities of $1,710, and long-term debt of $4,520. a. What is the value of the shareholders’ equity account for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How much is net working capital? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)arrow_forwardY3K, Inc., has sales of $3,300, total assets of $1,520, and a debt-equity ratio of 1.35. If its return on equity is 14 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardAssume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.2 Retum on assets (ROA) 4% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %arrow_forward
- The Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .43 and a current ratio of 1.5. Current liabilities are $990, sales are $6, 410, profit margin is 9.3 percent, and ROE is 20.4 percent. What is the amount of the firm's net fixed assets? (Do not round intermedifate calculations and round your answer to 2 decimal places, e.g., 32.16.) P.S $331.79 is not a correct answer!!arrow_forwardPlease no written by hand solutions Lee Corporation has the following information: Sales/Total Assets = 1.5; Return on assets (ROA) = 5.6%; and Return on equity (ROE) = 14.8%. What is Lee Corporation's debt-to-capital ratio? Assume that the firm uses only debt and common equity, so that total assets equal to total invested capital.arrow_forwardY3K, Inc., has sales of $6,329, total assets of $2,945, and a debt-equity ratio of 1.40. If its return on equity is 14 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net incomearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning