During the last year, a company had sales of $300,000 and a net income of $20,000, and its year-end assets were $200,000. The firm's total debt to total assets. ratio was 40%. Based on the DuPont equation, what was the firm's ROE?

During the last year, a company had sales of $300,000 and a net income of $20,000, and its year-end assets were $200,000. The firm's total debt to total assets. ratio was 40%. Based on the DuPont equation, what was the firm's ROE?

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: 6 2 points Sales Variable expenses Contribution margin Fixed expenses Total Per Unit $ 306,000 $ 20…

A: Problem 5Breakeven point is the sales level where revenue is equal to expenses, meaning no income…

Q: Amazon.com, Inc. is preparing its financial statements for the fiscal year ending December 31, 2023.…

A: Amazon's Basic Earnings Per Share (EPS) for Fiscal Year 2023 Calculate Amazon's Net Income:Net…

Q: Solve this problem

A: We know the formula for an installment loan, which is: M=(1+r)n−1P⋅r⋅(1+r)n Where: M : The monthly…

Q: What is their yield to maturity?

A: Given:- Current bond price (P) = $1,165- Years to maturity (n) = 15- Annual coupon payment (PMT) =…

Q: 10.3 Identify whether the following costs would be expensed (E) or capitalized (C) Lawyer fees…

A: Lawyer fees related to the successful defense of a patent:These fees are capitalized because they…

Q: Problem 2-61 (LO 2-2, LO 2-3) (Algo) Chaz Corporation has taxable income in 2024 of $1,312,650 for…

A: Solution:− To determine the maximum total depreciation deduction Chaz Corporation may deduct in…

Q: not use ai please

A: Part a: Compute the Equity Method Balance1. Initial Investment: - Corgan acquired 80% of Smashing…

Q: What is the labor rate variance for the month?

A: The labor rate variance is calculated using the formula: Labor Rate Variance = (Actual Rate -…

Q: Please give me answer

A: Step 1: Contribution margin ratio Contribution margin ratio = Sales ratio - Variable expense…

Q: Oriole Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The…

A: The analysis above focuses on calculating break-even points for a company under different scenarios.…

Q: A correcting entry is not required if a. a transaction has been journalized using the wrong amounts…

A: If a transaction is correctly journalized but posted incorrectly, a correcting entry is not needed.…

Q: Can you please solve this accounting question ?

A: Step 1: Define Lost SalesLost sales refer to a seller not being able to respond to customers' demand…

Q: Answer in step by step with explanation. Don't use Ai and chatgpt

A: a.AccountManagerExecutiveTotalSales revenue$ 1,075,200$ 1,192,800$ 2,268,000Direct…

Q: General Accounting give true solution

A: Step 1: Define Cost of Goods SoldThe cost incurred in manufacturing the product for converting the…

Q: Problem 5-(20 points) A company is building a powerplant. It is considering three alternatives.…

Q: What is the value of inventory listed on the firm's balance sheet?

A: Step 1: Introduction to the Balance SheetThe balance sheet is the document that shows the financial…

Q: The 2022 partical financial statements of XYZ Inc. are shown below. Complete the 2022 financial…

A: Referencehttps://www.investopedia.com/terms/o/operatingcashflow.asp

Q: Hello tutor provide answer this question

A: Step 1: Define Cash Flow from Operating Activities (Direct Method)By adding the cash receipts to the…

Q: Answer me

A: Step 1: Requirements of the questionIn this question, we are required to determine:The difference…

Q: Hi, Please help me solve for the orange boxes using the information in the excel. that is all the…

A: WorkingsStatement of Profit or Loss A/c Year 1Year 2Year 3Sales 1,000 1,200…

Q: Need help

A: 1. Calculate the Principal AmountDon's total car purchase is $12,000, from which he pays a down…

Q: Solve this problem

A: Option A:This option is incorrect because forgoing the trade credit discount results in an implied…

Q: super star

A: Harry was a self-employed CPA and had net earnings from self-employment of $120,000 for 2024. Among…

Q: None

A: Given,Direct costs: These are the costs directly associated with producing each snowmobile. In this…

Q: Solve this one not use ai

A: Step 1: Define InventoryIn accounting, inventory is an asset that a business holds on its balance…

Q: ?

A: Explanation of Cost of Equipment: The cost of equipment refers to the total amount spent to acquire…

Q: If you give me wrong answer I will give you unhelpful rate

A: Step 1: Define ManufacturingWhen raw materials are changed into the finished product by the business…

Q: Solve this accounting question problem

A: Step 1: Define Absorption CostingUnder absorption costing, the costing of the products is the same…

Q: General Accounting

A: Question: 1Explanation of Total Revenue:Total Revenue refers to the total income a company earns…

Q: Solve this general accounting question

A: Step 1: Define Contribution Margin AnalysisIn management accounting, the contribution margin…

Q: Not use ai please don't

A: Step 1:To calculate the required number of units to be sold to earn desired profit will be…

Q: Need help

A: The amount of equity required to finance the company's entire asset base is decreased by the debt…

Q: Can you please give me answer this accounting question?

A: Step 1: Define Earnings per ShareEarnings per share is a financial ratio that represents the net…

Q: Need answer please

A: To find the deferred gross profit as of December 31, 2007, we need to know the total gross profit…

Q: What was the cash coverage ratio for the year?

A: Step 1: Define Cash Coverage RatioThe cash coverage ratio refers to the financial ratio that shows…

Q: Answer of general Accounting

A: Step 1: Net Operating Income under absorption Costing can be calculated by subtracting the cost of…

Q: Hello tutor can you please give solution?

A: Given InformationBeginning inventory: $30,000Purchases: $80,400Sales: $100,800Sales returns:…

Q: Can you please give answer this accounting question

A: Step 1: Define Retained EarningsA firm's retained earnings refer s to the remaining amount of net…

Q: Need help with this accounting question

A: Step 1: Introduction to the InflationInflation is the rise in the rate of commodities due to changes…

Q: solve using fifo method Wildhorse Company just began business and made the following four inventory…

A: Units sold = Total available units for sale - Units on handUnits sold = (204 + 244 + 244 + 204) -…

Q: Don't use AI.

A: Just know that even without going through the explanation below, the answer is clearly zero. The…

Q: ??

A: Explanation of Total Assets: Total assets refer to the sum of all assets owned by a business,…

Q: If a company sells more than one product, and the sales reports show that the sales volume of…

A: 1. Identifying Rising Production Costs:When product A's sales are rising but overall profits are…

Q: Solve this one

A: Calculating the Effective Annual Rate (EAR) for Each AlternativeAlternative A:EAR = (1 + 0.02 / (1 -…

Q: Provide correct net sales

A: Step 1: Define Net SalesNet sales are the amount of revenue earned by the company after taking into…

Q: If you give me wrong answer I will give you unhelpful rate

A: Step 1: If Dennis's tax rate is 22 percent, which bond should he choose?We used the formula to…

Q: Problem 1.2.1 General Finance

A: Explanation of Present Price:The present price is the current cost of the item, which is $500 in…

Q: Carl is a self - employed real estate agent. For the current year, his self -employment net earnings…

A: Step 1: Calculate total earnings subject to Social Security:Carl's total earnings subject to Social…

Q: 1) Rover Co. began operations two years ago (Year 1) and recognized $37,000 in business income and…

A: Step 1: Carrying forward the business loss from Year 2In Year 2, Rover Co. incurred a business loss…

Q: E9-14 (Algo) Computing and Reporting the Acquisition and Amortization of Three Different Intangible…

A: 1. Acquisition Cost of Each Intangible AssetPatent: The acquisition cost is the cash paid for it,…

Question

100%

Solve this problem

During the last year, a company had sales of $300,000
and a net income of $20,000, and its year-end assets
were $200,000. The firm's total debt to total assets.
ratio was 40%. Based on the DuPont equation, what
was the firm's ROE?

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?
During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
During the current year. Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. What is the sales margin?
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
Last year Ross Inc. had sales of $330,000 and a net income of $20,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 40.00%. Based on the DuPont equation, what was the ROE? A. 10.41% B. 14.80% C. 13.33% D. 12.63% E. 9.06%
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm’s total-debt-to-total-assets ratio was 22.5%. Based on DuPont equation, what was Vaughn’s ROE?
Last year, Harrington Inc. had sales of $325,000 and a net income of $19,000. Its year-end assets were $250,000. The firms total debt/total assets was 55%. What was the ROE?
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 42.5%. Based on the DuPont equation, what was Vaughn's ROE?
Solve this question
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 72.5%. Based on the DuPont equation, what was Vaughn's ROE? Select the correct answer. a. 31.11% b. 30.88% c. 30.19% d. 30.42% e. 30.65%
None
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $240,000. The firm's total-debt-to-total-capital ratio was 32.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. Ⓒa. 11.73% b. 17.38% O c. 5.85% d. 8.66% e. 7.92%