What is its net income? A company has sales of $1,200, total assets of $800, and a debt ratioof 0.40. If its return on equity is 15%, what is its net income?a. $52b. $72c. $82d. $92

Step 1: Calculate Total EquityThe debt ratio is the proportion of total assets financed by debt. We…

Answered: A company has sales of $1,200, total…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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A company has sales of $1,200, total assets of $800, and a debt ratio of 0.40. If its return on equity is 15%, what is its net income? a. $52 b. $72 c. $82 d. $92