Goldstream Resources has $15 million in sales, a return on equity (ROE) of 14%, and a total asset turnover of 3.5 times. Common equity on the firm's balance sheet is 45% of its total assets. What is its net income? Round your answer to the nearest cent.

Goldstream Resources has $15 million in sales, a return on equity (ROE) of 14%, and a total asset turnover of 3.5 times. Common equity on the firm's balance sheet is 45% of its total assets. What is its net income? Round your answer to the nearest cent.

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 5P: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are...

See similar textbooks

Related questions

Q: Can you please solve this financial accounting question?

A: Step 1: Definition of Over or Under Applied OverheadOver or Under Applied Overhead occurs when the…

Q: Can you help me of solve this question? ?

A: Step 1: Define Material Price VarianceMaterial Price Variance (MPV) measures the difference between…

Q: Give me solution

A: The P/E ratio measures how much investors are willing to pay for each dollar of a company's…

Q: What is the company degree of operating leverage?

A: Given:Sales = $1,500,000Variable expenses = $900,000Contribution margin = $600,000Fixed expenses =…

Q: Accurate answer

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a calculated rate used…

Q: What is the investor's rate of return on these financial accounting question?

A: Step 1: Definition of Rate of ReturnThe rate of return measures the percentage gain or loss on an…

Q: I want to correct answer general accounting question

A: Step 1: Calculate the discountThe formula for the discount is:Discount=Face Value×Discount Rate×Time…

Q: subject-general account

A: Step 1: Understand the Index AdjustmentA TIPS adjusts its principal according to the Consumer Price…

Q: Please solve this problem

A: Step 1: Define Accounts ReceivableAccounts receivable is the asset account that records the amount…

Q: Total assets? General accounting

A: Step 1: Define Assets Turnover RatioThe assets turnover ratio for a firm is an activity ratio that…

Q: What is the amount of avoidable costs?

A: Explanation of Avoidable Costs: Avoidable costs are expenses that can be eliminated by choosing one…

Q: A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make…

A: Step 1: Understanding the Loan TermsThe company needs to borrow $100,000 from the bank to purchase…

Q: Need answer

A: Explanation of Unit Contribution Margin:The Unit Contribution Margin represents the amount each unit…

Q: 4 POINTS

A: Explanation of Quick Ratio: Quick ratio, also known as the acid-test ratio, is a liquidity measure…

Q: Financial Accounting Question need help please

A: Step 1: Definition of Net IncomeNet income represents the total profit a company earns after…

Q: general accounting

A: Step 1: Definition of Applied OverheadApplied overhead is the indirect manufacturing cost assigned…

Q: Given solution with calculation

A: Step 1: Definition of the Balance SheetThe Balance Sheet is a financial statement that provides a…

Q: none

A: Step 1: Definition of Balance Sheet ComponentsA balance sheet consists of sources of funds like the…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Net SalesNet sales represent the total revenue from sales after deducting…

Q: Answer please

A: Step 1: Introduction to cost allocationCost allocation is the process of assigning a portion of a…

Q: How much sales are required to earn the target income?

A: To determine how much sales revenue is required to achieve a target income of $120,000, we use the…

Q: General accounting

A: Convert the growth rate from a percentage to a decimal.Calculate the increase in sales by…

Q: Sub. General Account

A: To answer Chris Luna's query regarding the DuPont Corporation:(a) The Price-to-Earnings (P/E) ratio…

Q: Solve this question and accounting

A: Step 1: Definition of Overhead AppliedOverhead applied to production is calculated using the…

Q: Hi expert please help me this question general accounting

A: Step 1: Definition of Accounts ReceivableAccount receivable indicates the payment that the company…

Q: Need answer general Accounting

A: Step 1: Define Relevant Unit CostThe relevant unit cost refers to the total variable cost incurred…

Q: Financial accounting

A: Step 1: Analysis of information givenDividend paid recently (D0) = $3.35Constant growth rate (g) =…

Q: Subject: financial accounting

A: Explanation of Current Liabilities: Current liabilities represent all debts and obligations that a…

Q: Question

A: Markup Pricing is a pricing strategy where a fixed percentage is added to the cost of a product to…

Q: Compute the missing amount

A: Step 1: Requirements of the questionThe question requires calculating the missing amounts in the…

Q: General Accounting

A: Step 1: Define Overhead Applied to Work in ProcessOverhead Applied to Work in Process refers to the…

Q: Hello tutor give me correct answer general accounting

A: Step 1: Definition of SalesSales refer to the total revenue generated by a company from selling…

Q: Calculate the stock in the beginning

A: Step 1: Definition of Gross LossGross loss occurs when the total cost of goods sold (COGS),…

Q: Accounting

A: Concept of Beginning InventoryBeginning inventory refers to the total value of goods that a company…

Q: Determine the PE ratio of this financial accounting question

A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio is a financial metric…

Q: What is the inventory turnover ratio?

A: Explanation of Inventory Turnover Ratio: Inventory turnover ratio is a key efficiency metric that…

Q: Suppose Loc Motors, Inc. has 720 million shares outstanding with a share price of $65.20, and $30.85…

A: To determine how much debt Loc Motors, Inc. will have in three years while maintaining a constant…

Q: Need correct answer general Accounting

A: Step 1: Define ROA and ROEReturn on Assets (ROA) measures how efficiently a company generates profit…

Q: How many machine hours were used during the year?

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a rate calculated…

Q: General accounting

Q: financial account

A: Step 1: Definition of Return on Investment (ROI)Return on Investment (ROI) measures the…

Q: Subject: general accounting

A: Explanation of Return on Assets (ROA):Return on Assets (ROA) is a financial ratio that evaluates how…

Q: The following data were selected from the records of Fluwars Company for the year ended December 31,…

A: Belw solve this step-by-step using T-accounts for each relevant account. We need to track the…

Q: Compute the assets turnover ratio

A: Step 1: Define Net IncomeNet income is the difference between revenue and expenses. A company…

Q: hi expert please help me

A: We are given the following details about Brenda's Bar and Grill: Total assets = $17 millionCurrent…

Q: Need help

A: Explanation of Variable Costs: Variable costs are expenses that change in direct proportion to the…

Q: The income statement for September indicates a net income of $65,000. The corporation also paid…

A: Step 1: Given informationNet Income = $65,000Dividends = $15,000Beginning Stockholders' Equity = $0…

Q: Marston Ltd. purchased equipment for $310,500 on July 1, 2018. It is estimated that the equipment…

A: Explanation of Activity Method (Working Hours Method) Depreciation:The Activity Method (Working…

Q: Don't use ai please solve this question general Accounting

A: Step 1: Define Absorption CostingAbsorption costing is a method that includes all manufacturing…

Q: I don't need ai answer general accounting question

A: Calculation of Depreciation per mileDepreciation per mile = (Purchase price of Van - Residual…

Question

sub. general accounting

Goldstream Resources has $15 million in sales, a return on equity (ROE) of 14%, and a
total asset turnover of 3.5 times. Common equity on the firm's balance sheet is 45%
of its total assets.
What is its net income? Round your answer to the nearest cent.

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

What is its net income?
A firm has a ROE of 16.875%, asset turnover of 2.5, and an equity multiplier of 1.5. If the firm has sales revenue of $10,000, what is the net income?
You have the following data for a company. What is the return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $150,000; Total asset turnover = 1.8; Profit margin = 10.5%; Tax rate = 30%.
GlobalTech, Inc. has sales of 32.6 million, total assets of 24.3 million, and total debt of $8.5 million. If the profit margin is 12 percent, what is the net income?
What is its net income? General accounting
GlobalTech, Inc. has sales of 32.6 million, total assets of 24.3 million, and total debt of $8.5 million. If the profit margin is 12 percent, what is the net income? accurate answer
Triangular chemicals has total assets of $107 million, a return on equity of 35 percent, a net profit margin of 5.5 percent, and an equity multiplier of 2.25. How much are the firm’s sales? The company’s total sales are Round to one decimal place.
Triangular Chemicals has total assets of $95 million, a return on equity of 44%, a net profit margin of 5.1%, and an equity multiplier of 2.73. How much are the firm's sales?
PMM has $17 million in sales, its ROE is 17%, and its total asset turnover is 3.2X. Common equity on the firms balance sheet is 50% of its total assets. What is the net income?
A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin is 5 percent. The total equity is $7,500. What is the amount of the net income? Answer this question
A firm has a return on equity of 21 percent. The total asset turnover is 2.9 and the profit margin is 8 percent. The total equity is $8,000. What is the amount of the net income?
(DuPont analysis) Triangular Chemicals has total assets of $100 million, a return on equity of 42 percent, a net profit margin of 5.2 percent, and an equity multiplier of 2.47. How much are the firm's sales? The company's total sales are $ million. (Round to one decimal place.)