Y3K, Inc., has sales of $6,389, total assets of $3,005, and a debt–equity ratio
ID: 2764580 • Letter: Y
Question
Y3K, Inc., has sales of $6,389, total assets of $3,005, and a debt–equity ratio of 1.60. If its return on equity is 10 percent, what is its net income? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Y3K, Inc., has sales of $6,389, total assets of $3,005, and a debt–equity ratio of 1.60. If its return on equity is 10 percent, what is its net income? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Statement showing computations Particulars Amount Sales 6,389.00 Total Assets 3,005.00 Debt Equity = 1.60 implies Debt =1.60 Equity Debt + Equity = Assets 1.6Equity + Equity = 3,005 2.6 Equity = 3,005 Equity = 1,155.77 ROE 10% Return in $ = 1,155.77*10% 115.58 Net Income = $115.58
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