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: cost accounting

A: Step 1: Definition of Sustainable Growth Rate (SGR)The Sustainable Growth Rate (SGR) is the maximum…

Q: Using the high-low method

A: Concept of High-Low MethodThe high-low method is a technique used in cost accounting to separate…

Q: Provide correct answer the financial accounting question

A: Step 1: Accounting EquationThe Accounting Equation is the fundamental principle of double-entry…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Retained EarningsRetained earnings represent the cumulative net income a…

Q: Subject financial accounting

A: Explanation of Debt-to-Equity Ratio:The debt-to-equity ratio is a financial metric that measures a…

Q: can you please solve this

A: Step 1: Definition of Accounts Receivable Days OutstandingAccounts receivable days outstanding, also…

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

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

Q: Please provide correct answer

A: Step 1: Define Intangible AssetsIntangible assets are non-physical assets that provide long-term…

Q: Need help with this financial accounting question please answer

A: Step 1: Define Alternate Valuation DateThe alternate valuation date is an election available to…

Q: Plant-wide overhead rate?

A: Step 1: Calculation of total estimated overheadsTotal estimated overheads = Estimated overheads for…

Q: General accounting

A: The degree of operating leverage (DOL) measures how sensitive a company's operating income (or…

Q: What is the cost of goods manufactured for the year ?

A: Concept of Direct MaterialsDirect materials are raw materials that can be directly traced to the…

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: Financial accounting problem

A: Step 1: Define Return on Common Equity (ROCE)Return on Common Equity (ROCE) measures the…

Q: Problem related general Accounting

A: Concept of Net Operating IncomeNet Operating Income (NOI) represents the profit a business generates…

Q: MCQ

A: To find the Return on Equity (ROE), we use the formula: ROE =Net Income / Equity × 100 We are…

Q: ans

A: Given:Profit margin = 5%Asset turnover ratio = 2Net sales = $450,000Rate of return = 9% Formula:ROI…

Q: give me this Financial Accounting answer

A: Step 1: Define Sales Price per UnitThe sales price per unit represents the amount at which each unit…

Q: Hi expert please help me this question

A: Step 1: Definition of Overhead CostsOverhead costs include indirect manufacturing expenses, such as…

Q: Financial Accounting

A: Step 1: Define Holding Period Return (HPR)Holding Period Return (HPR) measures the total return…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Units of Activity DepreciationThe units of activity depreciation method…

Q: Amount of credit sales

A: To determine the amount of credit sales during August, we use the Accounts Receivable equation:…

Q: What should be the minimum price per unit company should charge?

A: 1.Calculate the total variable cost per unit:Direct material + Direct labor + Variable manufacturing…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Gross Profit Percentage and Inventory Turnover RatioGross Profit Percentage…

Q: Total assets?

A: 2. Calculate Total Assets:Given:Current Assets calculated as =$1470Net Fixed Assets = $2,326.Total…

Q: expert of general accounting answer

A: Step 1: Definition of Pension ExpensePension expense refers to the cost recognized by a company for…

Q: Financial Accounting

A: Step 1: Define Dividend YieldThe Dividend Yield is a financial ratio that shows how much a company…

Q: Ingram Enterprises has variable expenses equal to 65% of sales. At a $500,000 sales level, the…

A: To determine the new degree of operating leverage (DOL) after a $50,000 increase in sales, we need…

Q: choose best answer for this questions carefully

A: Correct Answer: (D) Variances bring attention to discrepancies in the budget and require managers to…

Q: Help

A: Step 1: Define Profit MarginsThe entities registered with stock bourses are required to file…

Q: What was the amount of credit sales?

A: Explanation of Accounts Receivable:Accounts Receivable (A/R) represents the amount of money a…

Q: hello teacher please solve questions

A: Step 1: Definition of Cost-Volume-Profit (CVP) AnalysisCVP analysis helps businesses determine the…

Q: Please give me true answer this financial accounting question

A: Step 1: Define Total Dollar ReturnThe Total Dollar Return measures the total gain or loss on an…

Q: solve asap this prob.

A: Step 1: Definition of Retained EarningsRetained earnings represent the portion of net income that a…

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: none

A: Step 1: Definition of Accrued InterestAccrued interest is the interest expense that a borrower has…

Q: General Accounting Question

A: Step 1: Definition of Variable Costing and Finished Goods InventoryUnder variable costing, only…

Q: Hi expert please help me

A: To calculate the contribution margin ratio, we need to first calculate the contribution…

Q: Answer? Financial accounting

A: Step 1: Define Cash Flow Degree of Operating Leverage (DOL)The Cash Flow Degree of Operating…

Q: What is the net income for the year

A: Step 1: Define Net IncomeNet income, also called the bottom line, represents the difference between…

Q: Hy expert please given answer accounting question

A: Step 1: Definition of Asset TurnoverAsset turnover measures a company's efficiency in utilizing its…

Q: What is the book value at December 31?

A: Explanation of Straight-Line Depreciation Method:The Straight-Line Depreciation Method evenly…

Q: accounting question

A: Step 1: Define Accounts Receivable TurnoverAccounts Receivable Turnover measures how efficiently a…

Q: How much is the over or under applied overhead of this general accounting question?

A: Step 1: Introduction to factory overheadFactory overheads are defined as indirect costs that are not…

Q: Please help me with this question general Accounting

A: Step 1: Define Direct Labor BudgetThe direct labor budget estimates the cost of labor required to…

Q: hi expert please help me

A: Calculate D1 Since the dividend is growing at a rate of 7.8%, we project next year's dividend (D1…

Q: What is income under full costing?

A: Step 1: Define Full CostingFull costing is also known as absorption costing and it is a method of…

Q: What is its average inventory?

A: Step 1: Define Inventory Turnover ratioThe inventory turnover ratio measures a firm's competency to…

Q: Income is expected to decrease by what amount?

A: how to calculate the expected decrease in net income:1. Calculate the Percentage Change in Net…

Q: What is the project expected unit sales? Accounting question

A: Step 1: Definition of SalesSales refer to the revenue generated from selling goods or services…

Question

final answer

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

ans
What is its net income?
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
What is its net income? Round the answer to the nearest cent. ??
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?