Iron Crest Drilling Co. has $18 million in sales, an ROE of 12%, and a total asset turnover of 4.0 times. Common equity on the firm's balance sheet is 40% of its total assets. What is its net income? (Round the answer to the nearest cent.)

Iron Crest Drilling Co. has $18 million in sales, an ROE of 12%, and a total asset turnover of 4.0 times. Common equity on the firm's balance sheet is 40% of its total assets. What is its net income? (Round the 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 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...

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Please help me solve this financial accounting problem with the correct financial process.

Iron Crest Drilling Co. has $18 million in sales, an ROE of
12%, and a total asset turnover of 4.0 times. Common equity
on the firm's balance sheet is 40% of its total assets.
What is its net income? (Round the answer to the nearest
cent.)

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