What is the return on equity? Frank's Used Cars has sales of$807,200, total assets of $768,100,and a profit margin of 6.68 percent.The firm has a total debt ratio of 54percent. What is the return onequity?A) 13.09 percentB) 12.04 percentC) 11.03 percentD) 8.56 percentE) 15.26 percent

Step 1: Formula for ROE: ROE = Net Income / Equity Step 2: Calculate Net Income: Net Income = Sales…

Answered: Frank's Used Cars has sales of…

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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The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?
Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. A.Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 8.75 percent. What is its assets turnover? Round your answer to 2 decimal places. ______ times B.If the Butters Corporation has a debt-to-total-assets ratio of 65.00 percent, what would the firm’s return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. C.What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? Input your answer as a percent rounded to 2 decimal places.
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TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a profit margin of 5.78 percent. What is the return on assets? A) 8.29 percent B) 6.48 percent C) 9.94 percent D) 7.78 percent E) 8.02 percent
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Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 15.5 percent. What is its assets turnover? Note: Round your answer to 2 decimal places. Assets turnover ratio b. If the Butters Corporation has a debt-to-total-assets ratio of 25.00 percent, what would the firm's return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. Return on equity % Return on equity times c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 20.00 percent? Note: Input your answer as a percent rounded to 2 decimal places. $
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Frank's Used Cars has sales of $807,200, total assets of $768,100, and a profit margin of 6.68 percent. The firm has a total debt ratio of 54 percent. What is the return on equity? A) 13.09 percent B) 12.04 percent C) 11.03 percent D) 8.56 percent E) 15.26 percent