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A firm has a return on equity of 27 percent. The total asset turnover is 1.6 and the profit margin is 6 percent. The total equity is $4,520. What is the amount of the net income?

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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A firm has a return on equity of 27 percent. The total asset turnover is 1.6 and the profit margin is 6 percent. The total equity is $4,520. What is the amount of the net income?

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