Kindly help me with general accounting question A corporation has sales of $600, total assets of $400, and a debt ratioof 0.25. If its return on equity is 20%, what is its net income?a. $50b. $70c. $60d. $80

Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures a company's…

Answered: A corporation has sales of $600, 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 corporation has sales of $600, total assets of $400, and a debt ratio of 0.25. If its return on equity is 20%, what is its net income? a. $50 b. $70 c. $60 d. $80