For the year ended December 31, 2019, Settles Inc. earned an ROI of 8.0%. Sales for the year were $15 million, and average asset turnover was 2. Average stockholders' equity was $2.6 million. Required: a. Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) b. Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.) a. Margin 4.0 % Net income 24 300,000 b. Return on equity 23.0 %

For the year ended December 31, 2019, Settles Inc. earned an ROI of 8.0%. Sales for the year were $15 million, and average asset turnover was 2. Average stockholders' equity was $2.6 million. Required: a. Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) b. Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.) a. Margin 4.0 % Net income 24 300,000 b. Return on equity 23.0 %

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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