Chapter 003 Working with Financial Statements 11. The Supply Co. has total equit

Question

Chapter 003 Working with Financial Statements 11. The Supply Co. has total equity of $639,400 and net income of $51.700. The debt-equity ratio is 55 and the total asset turnover is 14. What is the profit margin? a. 3.73 percent b. 4.86 percent c. 6.68 percent d. 7.24 percent e. 8.99 percent 12. DeMay Enterprises has a return on equity of 14 percent, a profit margin of 9.5 percent, and total equity of $325,000. What is the net income? a. $14,625 b. $30,875 c. $45,500 d. $58,445 e. $76,375 13. Nagel, Inc. has sales of $330,600, total assets of $252,100, and a profit margin of 7.5 percent. What is the return on assets? a. 5.72 percent b. 6.10 percent c. 7.63 percent d. 8.34 percent e. 9.84 percent 14. Decorative Paintings has total debt of $69,000, total equity of $345,000, and a return on equity of 10 percent. What is the return on assets? a. 8.33 percent b. 11.25 percent c. 12.50 percent d. 14.75 percent e. 16.67 percent 15. Ragtop, Inc. has total assets of $94,000, a debte-equity ratio of I.0, and net income of $3,700. What is the return on equity? a debt-eq a. 1.91 percent b. 3.94 percent c. 7.87 percent d. 10.09 percent e. 13.61 percent

Explanation / Answer

11. 51,700/639,400 = profit margn * 1.4*1.55

profit margin = 3.73 %

12. net income = 0.14*325,000 = 45,500

13. return on assets = 0.075*330600/252100 = 9.84 %

14. return on assets = 0.10*345000/(345000+69000) = 8.33%

max of 4 subsections

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.