4. Nick's Bird Cages has sales of $43 million, total assets of $29 million, and total debt of $9.5 million. If the profit margin is 8 percent, what is net income? What is ROA? What is ROE? Make sure to show your work.

Q: Denver, Incorporated, has sales of $24 million, total assets of $21.6 million, and total debt of…

A: Solution:- Net income means the net profit earned by a firm on its sales. So, net income = Sales x…

Q: Jupiter Explorers had $6,400 in sales. Net income was $125.   Total assets were $3000 and total debt…

A: ROE is used as a measurement of a company's profitability and efficiency in generating profits. A…

Q: 3. The total interest expense is half the Net Interest Income that is $225,000 which represent 80%…

A: Total assets are defined as the aggregate value of all things that have economic value and are owned…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: Rick’s Travel Service has asked you to help piece together financial information on the firm for the…

A: Return on assets ratio is calculated simply dividing net profit by total assets ROA =net…

Q: Naraine Cars has sales of $3,850, total assets of $4,350, and a profit margin of 5 percent. The firm…

A: A metric used to assess a company's profitability relative to its equity is the return on equity.…

Q: Here and Gone, Inc., has sales of $18,572,496, total assets of $12,105,055, and total debt of…

A: Return on assets (ROA) is a financial ratio that measures a company's profitability relative to its…

Q: Denver, Incorporated, has sales of $14.2 million, total assets of $11.3 million, and total debt of…

A: Shareholder equity helps investors and other companies in analyzing the growth or financial position…

Q: The president of Rodrigez, Inc., has asked you to gather some statistics about his corporation's…

A: Accounting ratios are defined as the metrics group which is used for measuring the profitability as…

Q: Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000,…

A: Earnings before interest and taxes: Earnings before interest, depreciation and taxes are the…

Q: Amanda's Auto Center sells an oil change for $39.95. The company has expenses of $12 for Samantha's…

A: Profit margin is the difference between the sales price and the cost of product or service to make…

Q: A company buys 2mm items for $3 each and sells 1mm of those items during a year for $6 each.…

A: EBITDA: EBITDA is an acronym of earnings before interest, taxes, depreciation, and amortisation, is…

Q: Compute returns on assets for AT&T and Verizon and answer the question below. Be sure to show your…

A: Return on assets is a profitability ratio that measures the net income produced by total assets…

Q: Last year, Hassan's Madhatter, Incorporated had an ROA of 6.6 percent, a profit margin of 11.55…

A: To calculate Hassan's Madhatter, Incorporated's total assets, we can use the formula:…

Q: Wims, Inc., has sales of $18.3 million, total assets of $13.3 million and total debt of $4.1…

A: Solution:- Net income means the amount the company is earning its profits ie. Revenues – total…

Q: Linda Robert sells gourmet chocolate chip cookies. The results of her last month of operations are…

A: Variable selling expenses = Total selling expenses  x 70% = 8000 x 70% = $5,600 Fixed selling…

Q: The Cookie Shoppe has sales of $637,500. The profit margin is 6.8 percent and the firm has a 50…

A: Retained earnings are the portion of a company's net income that is not paid out as dividends, but…

Q: Rick's Travel Service has asked you to help piece you the following information: sales are $7.4…

A: Sales = $7,400,000Total debt = $2,000,000Debt ratio = 35%ROE = 17.1%

Q: Consider the following information (in $million) to answer the question: 2018 Caulfield Clayton Bank…

A: Answer Cost effective means lowest cost

Q: tial analysis should include the following: The ratio equation The calculation of the ratio using…

A: Times-interest-earned ratio: The time interest earned ratio aids in determining the company's…

Q: Johnson Healthcare is a health care firm specializing in products for persons who are disabled.…

A: Given data; gross profit = $250,000 net sales = $1,500,000   Using gross profit value and net sales…

Q: Mak Cosmetics maintains an operating profit margin of 10% and asset turnover ratio of 2.5. If Mak…

A: ROE:Return on equity can be referred as the measure of return on equity where the net income of the…

Q: Denver, Incorporated, has sales of $27 million, total assets of $24.9 million, and total debt of…

A: Formula: Profit margin = Net income / Sales value

Q: The net profit margin tells how much profit a company makes for every dollar it generates in…

A: given N= net income I = income before tax Tax rate = 20% M(N,R) = NR

Q: Here and Gone, Inc., has sales of $17,546,456, total assets of $10,662,678, and total debt of…

A: Net Income will be calculated using formula :   Net Income = Net Sales  ×  Profit Margin

Q: Riley is interested in buying a local coffee shop and wants to determine its profitability…

A: Break-even point refers to a situation or level where the company covers all its fixed costs through…

Q: (3-5) ROE • Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: A company makes pens. They sell each pen for $77. Their revenue is represented by R = 7 x. The cost…

A: Given :-               R = 7 x.               C = 3 x + 4500              X( in part a ) = 1000 pens…

Q: Billy's Chrystal Stores Inc , has assets of $5,000,000 and turns over its assets 1.2 times per year.…

A: Return on assets = Profit / Assets

Q: Telecom Net Inc. is one among few leading telecommunication service providers in the town. The total…

A: Operating income is the amount of money earned by an entity after deducting operating expenses from…

Q: Problem #1: Proforma Statements Prepare a common size income statement given the following…

A: Hi studentSince there are multiple questions, we will answer only first question.Common size income…

Q: Rosita's Restaurant has sales of $4,500, total debt of $1,300, total equity of $2,400, and a profit…

A: Net profit = Profit margin*Sales Net profit = 0.05×$4500 = $225

Q: Firm A B ЕBIT $150,000 $150,000 Interest expense 20,000 75,000 Income tax 50,000 30,000 Debt 400,000…

A: Profit margin is one of the commonly used profitability ratio to gauge the degree to which a company…

Q: Calculating Profitability Ratios. Aorangiwai River Boats has sales of $15 million, total assets of…

A: RETURN ON ASSETSReturn on Assets is the Ratio between Net Operating Income & Average Total…

Q: enver, Incorporated, has sales of $13 million, total assets of $11 million, and total debt of $6.4…

A: The following equations need to  be used to calculate net income,Return on Assets(ROA) and Return on…

Q: Du Pont Analysis Keller's Cosmetics manitains an operating profit margin of 5% and an asset turnover…

A: Given information in question operating profit margin = 5% asset turnover ratio =3.  Calculation of…

Q: Calculate Zumwalt’s net profit margin and debt ratio. Earth’s Best Company has sales of $200,000, a…

A: Return on equity is the net income derived from the operations from the equity invested in the…

Q: Last year Mocha Java, Incorporated had an ROA of 10 percent, a profit margin of 5 percent, and sales…

A: Return on assets refer to an amount that shows the relationship between the profits earned in the…

Q: Two Sisters Dresses has net working capital of $43,800, net fixed assets of $232,400, net income of…

A: Net working capital - $43,800 Net Fixed assets - $232,400 Net income - $43,900 Current liabilities -…

Q: hite Waters, Inc., has sales of $28 million, total assets of $36 million, and total debt of $11…

A: ROA is return on assets and is measure of profitability and can be calculated by net income divided…

Q: Last year, Hassan’s Madhatter, Inc. had an ROA of 5.8 percent, a profit margin of 18.50 percent, and…

A: Basic FrameworkROA = Net income / Total assets = Sales x Profit Margin / Total AssetsHence, Total…

Q: Green Fire, Inc., has sales of $60 million, total assets of $42 million, and total debt of $18…

A: The return on assets is reflective of profitability ratio which will help in finding out the rate of…

Q: Here and Gone, Inc., has sales of $17,680,797, total assets of $8,472,354, and total debt of…

A: The ROE is a measure of the financial performance of the entity. Investor generally uses this to…

Q: = $17,055

A: Ans. Net Profit Margin = Net income/Sales