I want to.this question answer financial accounting A company has a total debt-equity ratio of 55%,sales of $950,000, net income of $25,000, andtotal liabilities of $200,000. What is the return onequity?

Step 1: Define Profitability RatioProfitability ratios reflect how efficiently a firm utilizes its…

Answered: A company has a total debt-equity ratio…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a company’s debt-to-value ratio is 40% calculate its debt-to-equity ratio. If the dollar value of the company’s debt is $200 million calculate its market value of equity and its market value of assets. Show all calculations.
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The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?
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A firm has sales of $800, total assets of $500, and a debt/equity ratio of 1.5. If its return on equity is 18%, what is its net income?
The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?
Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. A.Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 8.75 percent. What is its assets turnover? Round your answer to 2 decimal places. ______ times B.If the Butters Corporation has a debt-to-total-assets ratio of 65.00 percent, what would the firm’s return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. C.What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? Input your answer as a percent rounded to 2 decimal places.
Right Answer
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Is it possible to determine net income?
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A company has a total debt-equity ratio of 55%, sales of $950,000, net income of $25,000, and total liabilities of $200,000. What is the return on equity?