A company has a profit margin of 12 percent on sales of $18,000,000. If the company has debt of $5,000,000, total assets of $15,000,000, and an after-tax interest cost on total debt of 6 percent, what is the company's ROA?

A company has a profit margin of 12 percent on sales of $18,000,000. If the company has debt of $5,000,000, total assets of $15,000,000, and an after-tax interest cost on total debt of 6 percent, what is the company's ROA?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: need help this accounting question

A: Step 1: Definition of Direct Material Cost VarianceDirect Material Cost Variance is a key component…

Q: Part 3 and Part 4 solution?

A: Part 3: Materials Quantity VarianceStandard Quantity Allowed = 5,600 products × 6.00 pounds = 33,600…

Q: hello teacher please give me correct answer

A: Given Par value of the bond = $500Call premium = 6%The bond is called early, before maturity.What…

Q: What is the net income fore the period? accounting question

A: Step 1: Definition of Net IncomeNet income is the profit a company makes after subtracting all…

Q: Please provide the accurate answer to this General accounting problem using valid techniques.

A: Step 1: Define Carrying Value of Bond LiabilityThe carrying value (also known as book value) of a…

Q: Can you demonstrate the accurate method for solving this General accounting question?

A: Step 1: Define Straight-Line DepreciationStraight-line depreciation spreads the cost of an asset…

Q: Solve this

A: Let's break it down step-by-step The Price-to-Earnings (P/E) ratio is a common tool used to value a…

Q: financial accounting

A: Step 1: Definition of Maturity ValueMaturity Value is the total amount that will be repaid on a note…

Q: Financial Accounting Question please answer

A: Yield to Maturity (YTM): 5.41% This is the annual return you'd earn if you bought the bond for $455…

Q: What is the bond carrying amount?

A: Step 1: Definition of Bond Carrying AmountThe bond carrying amount, also known as the book value of…

Q: How many units must be sold? Accounting question

A: Step 1: Definition of Target Profit UnitsThe number of units needed to reach a target profit refers…

Q: Can you explain the steps for solving this General accounting question accurately?

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to allocate…

Q: What should Tringale report as its deferred income tax liability as of the end of its first year of…

A: Step 1: Definition of Deferred Income Tax LiabilityDeferred Income Tax Liability arises when a…

Q: I am searching for the correct answer to this General accounting problem with proper accounting…

A: Step 1: Define Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) measures the average number…

Q: hello tutor provide correct option

A: Step 1: Definition of the Gross Profit MethodThe Gross Profit Method is used to estimate the ending…

Q: Solve this financial Accounting problem

A: Explanation of Profit Margin:Profit margin is a measure of a company's profitability, calculated by…

Q: Hello tutor please provide correct answer general accounting question with correct solution do fast

A: Step 1: DefinitionFixed Asset A long-term tangible asset used in business operations (e.g.,…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Define Unconfirmed Profits in Beginning InventoriesUnconfirmed profits in beginning…

Q: what is the depreciation expense for year 1 and year 2?

A: Step 1: Definition of Units-of-Activity Depreciation MethodThe Units-of-Activity (or…

Q: Solve this accounting question ASAP

A: Concept of Variable Cost per Unit:This is the portion of total cost that changes with each unit…

Q: Please explain the correct approach for solving this general accounting question.

A: Step 1: Definition of Applied Factory OverheadApplied factory overhead is the amount of overhead…

Q: Please provide problem with accounting question

A: Step 1: Definition of Ending Cash BalanceThe Ending Cash Balance is the amount of cash a company has…

Q: What is the expected percentage change in net operating income? Accounting question

A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) is a…

Q: Each unit of L-Z20 would be assigned overhead of

A: Explanation of Direct Labor Hours:Direct labor hours refer to the total number of hours workers…

Q: Can you demonstrate the accurate method for solving this General accounting question?

A: Step 1: Define Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) measures the number of…

Q: Accounting questions solve

A: Step 1: Calculate each partner's share of the partnership's net incomeSince there are four partners,…

Q: Not use ai solve this questions do fast

A: Given Data:Sales: $420 million. This is the revenue Greenfield generated last year.Fixed Assets:…

Q: The standard labor cost in the production of a pair of Thunder Brand running shoes is 0.60 hours at…

A: Explanation of Standard Labor Cost:Standard labor cost represents the expected cost of labor to…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Explanation: In the given case, we are required to calculate the gross margin under absorption…

Q: what is toms realized gain ?? accounting

A: Step 1: Definition of Realized GainA realized gain occurs when an individual sells or exchanges an…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Define Gain or Loss on Sale of AssetGain or loss on sale of a fixed asset is calculated by…

Q: What percentage change in sales occurs if profits increase by 2% when the firm's degree of operating…

A: Understand the Degree of Operating Leverage (DOL)The degree of operating leverage measures how…

Q: Assume 007 Inc. made sales of $964.4 million during 2016. Cost of goods sold for the year totaled…

A: Step 1: Definition of Gross Profit Percentage & Inventory Turnover RatioThe Gross Profit…

Q: What is the company's gross income....??

A: Step 1: Definition of Gross IncomeGross income refers to the total revenue earned by a company from…

Q: Can you explain the correct approach to solve this general accounting question?

A: Step 1: Definition of Gross MarginGross margin is the difference between total sales and the cost of…

Q: answer please

A: Interest = Principal * Rate * TimeInterest = 20,000*5.5%*(150/360)Interest = $458.33 Maturity Value…

Q: MCQ

A: Explanation of Joint Costs:Joint costs are the common costs incurred during a single production…

Q: Calculate the predetermined overhead rate to apply factory overhead.

A: Concept of Factory Overhead:Factory overhead, also known as manufacturing overhead, includes all…

Q: What is the amount of the net fixed assets?

A: Explanation of Net Working Capital: Net working capital represents the difference between a…

Q: General accounting

A: Each partner's adjusted basis at the end of the year is calculated as follows:Beginning basis:…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Step 1: Definition of Absorption CostingAbsorption costing, or full costing, assigns both variable…

Q: What is the earings per share?

A: Earnings Per Share (EPS) is a financial metric that shows how much profit a company makes for each…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: Step 1: Definition of Accounts Receivable (AR)Accounts Receivable (AR) refers to the outstanding…

Q: I want to correct answer general accounting question

A: Step 1: Definition of Inventory Errors Effect on Net IncomeInventory errors impact the cost of goods…

Q: Provide Answer

A: Explanation of Current Liability:Current liabilities are financial obligations that a company is…

Q: General accounting

A: Step 1: Definition of Capacity UtilizationCapacity Utilization refers to the extent to which a firm…

Q: Solve with correct values no assumption. otherwise unhelpful .

A: 1. Contribution Margin per Machine Hour (Brightwood Seating):Selling Price = $55Variable Cost =…

Q: Solve it by using proper method

A: The first step in calculating the applied overhead is to determine the predetermined overhead rate.…

Q: What is the company's debt to equity ratio? Accounting

A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity ratio is a financial leverage ratio…

Q: Solve this question and accounting

A: Step 1: Definition of Cash Received from CustomersCash Received from Customers represents the actual…

Question

Can you demonstrate the accurate method for solving this financial accounting question?

A company has a profit margin of 12 percent on sales of
$18,000,000. If the company has debt of $5,000,000,
total assets of $15,000,000, and an after-tax interest cost
on total debt of 6 percent, what is the company's ROA?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Please given answer Accounting question
what is the firm's return on assets?
A manufacturing company has a profit margin of 12% on sales of $18,000,000. The firm has total assets of $25,000,000 and total debt of $8,000,000. The after-tax interest cost on total debt is 4.5%. What is the firm's Return on Assets (ROA)? A) 9.88% B) 8.64% C) 10.12% D) 7.92%
You have the following data for a company. What is the return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $150,000; Total asset turnover = 1.8; Profit margin = 10.5%; Tax rate = 30%.
DTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?
Green Fire, Inc., has sales of $60 million, total assets of $42 million, and total debt of $18 million. If the profit margin is 9 percent, what is the ROA?
The Blue Jay Corporation has annual sales of $5,200, total debt of $1,500, total equity of $2,800, and a profit margin of 8 percent. What is the return on assets?
I want to correct answer general accounting
Bartlett's Pears has a profit margin of 8.20 percent on sales of $24,300,000. If the firm has a debt of $10,400,000 and total assets of $21,000,000, what is the firm's ROA? Answer
What is the firm's ROA?
Need answer
Global Tech, Inc. has sales of 32.6 million, total assets of 24.3 million, and total debt of $8.5 million. If the profit margin is 12 percent, what is the net income?