Answered: ABC Corp has equity of $600,000. Its…

Business

Accounting

ABC Corp has equity of $600,000. Its ROA is 12% and the ROE is 1.4 times its ROA. Calculate the company's total assets.

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 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...

See similar textbooks

Related questions

Q: What amount should the bond issue proceeds increase shareholders equity ?

A: Step 1: Calculate the number of bonds issued The total value of the bond issuance is $3,500,000, and…

Q: Can you help me solve this general accounting question using valid accounting techniques?

A: Step 1: Definition of Bad Debt ExpenseBad debt expense is the amount of accounts receivable that is…

Q: Financial accounting

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a financial performance metric…

Q: What is the depreciation expense for 2019?

A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…

Q: What is the length of the firm's operating cycle?

A: Explanation of Operating Cycle:The operating cycle represents the total number of days it takes a…

Q: Compute the margin for 2019 ??

A: Step 1: Definition of MarginMargin, in managerial accounting, refers to the ratio of net operating…

Q: Need Accurate Answer

A: Explanation of Assets: Assets are economic resources owned or controlled by a company that have…

Q: calculate the equity

A: To calculate the equity premium, we need to determine the difference between the stock market return…

Q: White Co. incurs a cost of $17 per pound to produce Product X, which it sells for $25 per pound. The…

A: Explanation: In the given case, we are required to calculate the differential cost of producing…

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

A: Step 1: Define Total Stockholders' EquityTotal stockholders' equity represents the residual interest…

Q: Choice best answer please

A: Step 1: Definition of Units to be Assigned CostIn process costing, units to be assigned cost refers…

Q: During FY 2023, Delta Company plans to sell Gadgets for $18 a unit. Current variable costs are $7 a…

A: Provided Data:Selling Price per Unit = $18Variable Cost per Unit = $7Fixed Costs = $187,000Step 1:…

Q: I am looking for help with this financial accounting question using proper accounting standards.

A: Concept of Face Value of Bond:The face value of a bond, also called par value, is the amount the…

Q: At the beginning of the year, a company estimates total direct materials costs to be $800,000 and…

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

Q: what is its leval of inventory ? accounting

A: Step 1: Definition of Quick RatioThe quick ratio (also known as the acid-test ratio) measures a…

Q: How much of this will appear on the income statement after tax?

A: Step 1: Definition of After-Tax LossAn after-tax loss is the net financial impact of a loss after…

Q: Don't want AI answer

A: Concept of Accounts Receivable:Accounts receivable refers to the amount of money a company expects…

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

A: Step 1: Definition of Outstanding SharesOutstanding shares refer to the total number of shares of a…

Q: Lawrence Manufacturing is working on Job 882, which requires $11,250 of direct materials, $6,400 of…

A: To compute the total cost of Job 882, we need to sum: Direct MaterialsDirect LaborApplied…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of License ExpenseA license expense is the cost incurred by a company to maintain…

Q: How many units must be sold to earn income of $60,000? accounting question

A: Step 1: Definition of Target Profit Sales in UnitsTo determine the number of units needed to reach a…

Q: Kennedy Devices has beginning net fixed assets of $610 and ending net fixed assets of $755. Assets…

A: Step 1: DefinitionsConcept of Capital Spending:Capital spending (also called capital expenditures or…

Q: Financial Accounting

A: Step 1: Definition of Maturity ValueThe Maturity Value of a note is the total amount due on the note…

Q: What did goodyear report for net income for the year ending December 31, 2016?

A: To calculate net income, we use the following formula: Net Income = Sales - Cost of Sales - Other…

Q: Help me

A: Step 1: Definition of Activity RateThe Activity Rate is the cost per unit of activity driver (e.g.,…

Q: Question: In 2021, Bridgestone Spa reported revenue of $45,000. Total expenses for the year were…

A: Step 1: DefinitionsConcept of Net Income:Net income is the amount a company earns after subtracting…

Q: check the question! If image is blurr comment please i will write values . dont give answer with…

Q: Kindly help me with this financial accounting questions not use chart gpt please fast given solution

A: Step 1: Define Asset DisposalAsset disposal refers to removing a fixed asset from a company's books…

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

A: Step 1: Define Inventory ValuationInventory valuation is the process of assigning a monetary value…

Q: calculate the production cost per unit under absorption costing

A: Step 1: Definition of Production Cost per Unit Under Absorption CostingProduction cost per unit…

Q: What is sweet treats lnc's profit percentage for 2023? accounting question

A: Step 1: Definition of Gross Profit PercentageGross profit percentage (also known as gross margin…

Q: A corporation has discovered that an employee has been embezzling funds from the company over the…

A: Explanation Of Embezzlement: Embezzlement is the fraudulent misappropriation of funds, assets, or…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: Step 1: Definition of Owner's WithdrawalAn owner's withdrawal refers to the amount of money taken…

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

A: Step 1: Define Gross Profit RatioThe gross profit ratio is the percentage of profit made on the cost…

Q: calculate the companys debt to equity ratio ? general accounting

A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity ratio is a financial metric that…

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

A: Step 1: Definition of Current AssetsCurrent Assets are short-term assets that are expected to be…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Definition of Lower of Cost or Market (LCM) MethodThe Lower of Cost or Market (LCM) method…

Q: ????

A: Explanation of Residual Value Guarantee: A residual value guarantee is a contractual provision in a…

Q: The total gross margin for the month under absorption costing is?

A: Explanation of Absorption Costing: Absorption costing is a method of product costing that assigns…

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

A: Concept of Assets:Assets are resources owned by a business that have economic value and provide…

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

A: To calculate the budgeted manufacturing cost per unit, follow these steps: Add the variable costs…

Q: Please explain this financial accounting problem by applying valid financial principles.

A: Concept of Net Credit Sales:Net credit sales refer to the total sales made on credit during a…

Q: 4 PTS

A: Sales discounts, sales returns, and sales allowances reduce the total revenue a company reports.They…

Q: Harrison Electric began2018 with a credit balance of $41,500 in the allowance for sales returns…

A: Provided Data:Beginning allowance for sales returns (credit balance) = $41,500Total sales during…

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

A: Step 1: Definition of Beginning InventoryBeginning inventory is the value of a company's inventory…

Q: Provide correct answer

A: Explanation of Receivables Turnover Rate: Receivables turnover rate measures how efficiently a…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of Adjusted Cost of Goods SoldThe adjusted cost of goods sold (COGS) accounts for…

Q: Accurate Answer

A: Provided Data:Sales in June = 8,400 unitsSales in July = 6,800 unitsSales in August = 9,500…

Q: None

A: Step 1: Definition of Flexible Budget Overhead CostsFlexible Budget Overhead Costs adjust variable…

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

A: Step 1: Define Direct Labor Cost VarianceThe Direct Labor Cost Variance is the difference between…

Question

calculate the companys total assets

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

The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?
Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of $5,500,000 with a cost of capital of 10.5%. What is Skylers weighted average cost of capital?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its quick ratio is 1.0. What is the firms level of current liabilities? What is the firms level of inventories?
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of $4,500,000 with a cost of capital of 11.5%. What is Tylers weighted average cost of capital?
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels current ratio? a. 3 c. 1 b. 2 d. 0.5
The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is 200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the companys net income? What is its net cash flow?
Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is 2,000,000.
Winston Watch’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?