What is the company’s total assets? ( Do not round intermediate calculations. Ro

ID: 2760359 • Letter: W

Question

What is the company’s total assets? (Do not round intermediate calculations.Round your answer to the nearest whole number (e.g., 32).)

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

What is the company’s return on equity? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Martinez, Inc., has a total debt ratio of 0.50, total debt of $329,000, and net income of $41,750.

Debt ratio isTotal debt/Total asset, so if debt ratio is 0.5, then total asset is 2×debt= 2×329,000 = 658,000$.

Total equity will 329,000 as Total asset = Debt + Equity, so rearranging we get equity as 329,000$.

Return on equity is Net income/Total equity = 41,750/329,000 = 12.69%

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