A company has a profit margin of 18 percent on sales of $25,000,000. If the company has debt of $6,000,000, total assets of $30,000,000, and an after-tax interest cost on total debt of 4 percent, what is the company's ROA?

A company has a profit margin of 18 percent on sales of $25,000,000. If the company has debt of $6,000,000, total assets of $30,000,000, and an after-tax interest cost on total debt of 4 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: Contribution margin????

A: Step 1: Definition of Contribution Margin The contribution margin refers to the difference between a…

Q: belance sheet ? give me answer fast please

A: Step 1: Definition of Current LiabilitiesCurrent liabilities are debts or obligations that are…

Q: Can you solve this financial accounting question with the appropriate financial analysis techniques?

A: Concept of Net Income:Net income is the total profit a company earns after all expenses, taxes, and…

Q: In business combinations under common control, goodwill is____. A. Calculated as in regular business…

A: Approach to solving the question: Detailed explanation:In business combinations under common…

Q: I need help finding the correct solution to this financial accounting problem with valid methods.

A: Step 1: Definition of Tax LiabilityTax liability is the total amount of tax a business or individual…

Q: Please explain the solution to this General accounting problem with accurate principles.

A: Step 1: Define ProfitProfit is the financial gain obtained when the total revenue earned from…

Q: Hello expert solve with accounting question

A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's sales revenue…

Q: None

A: Step 1: Definition of Gross Profit PercentageGross Profit Percentage is a financial metric that…

Q: What is the fixed cost per month?

A: Explanation of Variable Cost per Unit:Variable cost per unit refers to the cost that changes…

Q: What is the income of acceptance?

A: Sure! Here's a breakdown:1.1.13 - Allocation of Joint Product Costs:The Relative Sales Value Method…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Step 1: Definition of Activity RateThe activity rate is the cost per unit of activity. It is…

Q: I need with accounting

A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate is a rate used to…

Q: Please explain the accurate process for solving this financial accounting question with proper…

A: Concept of Cost of Goods Sold (COGS):Cost of Goods Sold refers to the direct costs incurred in…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: 1: Calculate Cost of Goods Sold (COGS)COGS is calculated using the formula:COGS = Beginning…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate is calculated at…

Q: Can you solve this financial accounting problem using accurate calculation methods?

A: Step 1:Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Q: Can you explain this general accounting question using accurate calculation methods?

A: To calculate each partner's adjusted basis at the end of the year:Start with beginning basis:…

Q: chose best answer

A: To calculate the profit under absorption costing, given the profit under marginal costing, we need…

Q: i dont know answer please help me this problem

A: Step 1: Definition of Weighted-Average Inventory Costing MethodThe weighted-average inventory…

Q: hello tutor help this correct option

A: Step 1: Definition of Average Cost Per UnitThe average cost per unit is the total cost of production…

Q: ANSWER?

A: Concept of Sales (Revenue):Sales, also known as revenue, represent the total income a company earns…

Q: General accounting

A: Step 1: Definition of Percent Markup Based on Selling PriceThe percent markup based on selling price…

Q: Help with accounting questions

A: Step 1: Definition of Retained EarningsRetained earnings represent the cumulative amount of net…

Q: Need quickly help in this

A: To determine the adjusted cost of goods sold (COGS) for Atlas Corporation, follow these steps:Start…

Q: I need help solving this general accounting question with the proper methodology.

A: Step 1: Definition of Total ReturnTotal return refers to the overall return on an investment over a…

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

A: The Profitability Index (PI) is calculated as:PI = Present Value of Future Cash Flows / Initial…

Q: I need the correct answer to this financial accounting problem using the standard accounting…

A: Step 1: Definition of Provision for Doubtful AccountsProvision for doubtful accounts is an estimate…

Q: If one unit of Product BF7 used $3.28 of direct materials and $5.16 of direct labor, sold for…

A: Step 1: Definitions Concept of Gross Profit:Gross profit is the difference between sales revenue and…

Q: Accounting: B4U, Inc., has an average collection period of 34 days. Its average daily investment in…

A: Explanation of Receivables Turnover:Receivables turnover is a financial ratio that measures how many…

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

A: Let's solve step by step. 1: Use the Accounting EquationAssets = Liabilities + Stockholders'…

Q: Given solution fast please

A: To find the percent markup based on selling price, follow these steps:1. Calculate the markup…

Q: Need help with this general accounting question

A: Step 1: Definition of Cash Collected from CustomersCash collected from customers represents the…

Q: How much is the 2019 depreciation expense??

A: Step 1: Definition of DepreciationDepreciation is the process of allocating the cost of a long-term…

Q: Accounting questions solve

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

Q: Bryan owns a fitness centre called peak performance Gym

A: Concept of Sales Proceeds:Sales proceeds refer to the total amount received from the buyer when an…

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

A: Step 1: DefinitionReturn on Equity (ROE): Return on Equity (ROE) is a financial metric that measures…

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

A: Step 1: Definition of Net IncomeNet income is the total profit of a company after all expenses,…

Q: How to calculate Owner's Equity (Owner's capital and net income) does the debit equals the credit…

A: Calculate the total equity as follows:Total equity = Total assets - Total liabilties…

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

A: Step 1: Define Return on Assets (ROA)Return on Assets (ROA) is a financial ratio that measures how…

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

A: Step 1: Definition of Sum-of-the-Years'-Digits (SYD) MethodThe Sum-of-the-Years'-Digits method is an…

Q: Hello tutor solve this question accounting

A: Step 1: Definition of Cost-Based PricingCost-Based Pricing is a pricing strategy where the selling…

Q: Can you please solve this accounting question

A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) is a measure of the cash…

Q: On December 31, calculated the payroll, which indicates gross earnings for wages ($460,000), payroll…

A: First, we need to record the payroll. The gross earnings for wages is $460,000. The total deductions…

Q: best option Accounting question

A: Step 1: Definition of Net SalesNet Sales refers to a company's total revenue from sales during a…

Q: Sunland Plastics Company deposits all receipts and makes all payments by check. The following…

A: Step 1:Deposit in transit Deposit in transit refers to funds that a company or individual has sent…

Q: BPR Company uses a job order costing system and has set a pre-determined overhead rate of 475% of…

A: Step 1: Definitions Concept of Job Order Costing:Job order costing is a costing method used by…

Q: Need help this question

A: Step 1: Definition of Receivables Turnover RatioThe Receivables Turnover Ratio measures how…

Q: Solve this

A: Provided Data:Sales Revenue = $480,000Sales Returns and Allowances = $15,500Sales Discounts =…

Q: provide correct answer

A: To determine EBIT (Earnings Before Interest and Taxes) for SLG Corp., we start by recognizing that…

Q: General Accounting Question

A: Step 1: Define High-Low MethodThe high-low method is a way to estimate variable and fixed costs…

Question

Financial Accounting Question please answer

A company has a profit margin of 18 percent on sales of
$25,000,000. If the company has debt of $6,000,000,
total assets of $30,000,000, and an after-tax interest cost
on total debt of 4 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?
I want to correct answer general accounting
What is the firm's ROA?
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?
Need answer
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
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?
Wims Inc., has sales of $18.3 million total assts of $13.3 million and total debt of $4.1 million. The profit margin is 11 percent. a. What is the company's net income? b. What is the company's ROA? c. What is the company's ROE?