Answered: John wick Company has total assets of…

John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of $230,000. If the equity multiplier is 2.5, what is its ROE? please provide correct answer

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 6P

See similar textbooks

Related questions

Q: End of year information for the austin company is as follows solve this question general Accounting

A: Step 1: Define Cost of Goods ManufacturedThe total cost of goods manufactured can be calculated by…

Q: Shepard Industries produced 4,000 tables last month. The standard variable manufacturing overhead…

A: Step 1: Information givenStandard Variable MOH Rate = $24 per machine hourActual Variable MOH Rate =…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Net Realizable Value of Accounts ReceivableThe Net Realizable Value (NRV) of…

Q: Kindly help me with this question general Accounting

A: The contribution margin ratio is calculated as: Contribution Margin Ratio = (Selling Price per Unit…

Q: Introduce yourself to your peers by sharing something unique about your background. Explain how you…

A: Hello everyone.Something unique about my background is that I work in a hospital's HR department and…

Q: Get correct answer accounting questions

A: The equity premium is the additional return that investors require for investing in the stock market…

Q: Provide answer general accounting question

A: Step 1: Calculate the Gain on SaleThe equipment originally cost $24 million, and its book value…

Q: What is its D/E ratio for WACC purposes? General accounting

A: To calculate the Debt-to-Equity (D/E) ratio for WACC purposes, we need the market value of both…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Actual Return on Pension AssetsThe actual return on pension assets is the…

Q: I want answer

A: Explanation of Plant-Wide Overhead Rate:A Plant-Wide Overhead Rate is a single rate used to allocate…

Q: A fixed asset with a cost of $38, 400

A: Explanation: Gain (loss) on disposal of fixed asset can be calculated using the following…

Q: Calculate the return on assets and return on equity ratio?

A: To calculate **Return on Assets (ROA)** and **Return on Equity (ROE)** for Sunset Café, we use the…

Q: The difference between a company's sales and cost of goods sold is referred to as the: a. gross…

A: The correct answer is:a. gross profit. Explanation:Gross Profit:The difference between a company's…

Q: None

A: Step 1: Definition of Debt to Equity RatioThe debt to equity ratio measures the proportion of a…

Q: Answer please

A: Step 1: Formula Preferred dividends = Number of preferred shares x Par value x RateCommon dividends…

Q: None

A: Step 1: Definition of Gross Profit MarginGross profit margin is the ratio of gross profit to sales…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Owner's Capital BalanceThe owner's capital balance at the end of the period is…

Q: Provide answer

A: Explanation of Borrowing Costs:Borrowing costs refer to interest and other expenses incurred by a…

Q: Provide answer

A: Explanation of Total Sales:Total sales refer to the gross amount of revenue generated by a company…

Q: Himani Co. computes its predetermined overhead rate annually on the basis of direct labour-hours. At…

A: The predetermined overhead rate (POHR) is calculated using the following formula: POHR = Estimated…

Q: What is the company's return on equity on these financial accounting question?

A: Step 1: Formulas Equity = Assets - LiabilitiesNet income = Profit margin x SalesReturn on equity =…

Q: Expert please provide answer

A: Approach to solving the question: In order to get the shareholder's equity we need to add all the…

Q: Discuss the accounting treatment for goodwill and the potential impact of impairment on the…

A: Definitions (4 Sentences)1. Goodwill: Goodwill represents the excess of the purchase price over the…

Q: General Account Subject

A: Step 1: Calculation of gross profit per unitSelling price per item = $9Purchase cost per item =…

Q: I need a Expert NOT AI Sandra Robinson Company issued $588,000 of 9%, 20-year bonds on January 1,…

A: Step 1: Bond is a instrument that evidences a company's debt. It is the document issued against…

Q: Caddy Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based…

A: To determine the total materials variance, we will break it into two components:Materials Price…

Q: Abc

A: To calculate the required return on Paccar's stock, we can use the Dividend Discount Model (DDM) for…

Q: hello tutor given correct answer General accounting

A: The question requires the determination of the tax equivalent yield.The tax-equivalent yield…

Q: Calculate the business return on assets?

A: Approach to solving the question:Freeform Detailed explanation: The computation of Return on Assets…

Q: Gross profit for genera account.??

A: Step 1: Understanding Gross ProfitGross profit is the difference between the revenue generated from…

Q: provide cost account ans asap

A: Total Direct Materials Cost VarianceThe total direct materials cost variance is the difference…

Q: Need help with this financial accounting

A: Step 1: Define Asset Recording ValueAssets are recorded at fair market value (FMV) at the time of…

Q: i wont to this question answer General accounting question

A: To calculate the required values, we will use the data provided: a) Standard Direct Labor Rate Per…

Q: What is Adrian's gross profit and net profit in dollars?

A: The question requires the determination of the gross profit and net profit. Gross profit for a…

Q: Hi teacher please help me this question

A: Step 1: Definition of Full Cost Per UnitFull cost per unit refers to the total cost incurred to…

Q: Borrowing costs on qualifying assets are

A: Borrowing costs on qualifying assets, such as those incurred during the construction of an asset,…

Q: Financial accounting question

A: Step 1: Calculation of gross profitGross profit = Sales - Cost of goods soldGross profit = $541,000…

Q: Give me Answer

A: Approach to solving the question:Freeform Detailed explanation: In decision-making, relevant costs…

Q: A company is considering whether to adopt a new accounting software system. Discuss the potential…

A: Accounting Software System: A specialized computer program designed to record, process, and analyze…

Q: Abc

A: Step 1: Definition of Balance SheetA balance sheet shows a company's financial position at a…

Q: Please solve this question

A: Step 1: Compute the increase/(decrease) in units and the total cost as follows: ABCD1Computation of…

Q: Cost accounting

A: To calculate the cost of units transferred out, we use the cost reconciliation formula: Cost of…

Q: I need help

A: A control premium is the extra amount a buyer is willing to pay to gain a controlling interest in a…

Q: Kindly help me with accounting questions

A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Q: Ans

A: Step 1: Definition of Activity-Based Overhead Rate (ABOR)Activity-Based Overhead Rate (ABOR) is the…

Q: I want answer

Q: I want to correct answer general accounting question

A: Average collection period = (Average accounts receivable / Net credit sales) x 365 days Average…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of After-Tax IncomeAfter-Tax Income represents the net income remaining after…

Q: Don't use ai solution provided correct answer general Accounting question

A: Step 1: Identify known valuesStep 2: Calculate Standard Quantity AllowedStep 3: Use the Direct…

Q: Calculate the gross profit of a company??

A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's sales revenue…

Question

John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of $230,000. If the equity multiplier is 2.5, what is its ROE? please provide correct answer

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

John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of $230,000. If the equity multiplier is 2.5, what is its ROE? Answer this question
Please answer this account problem
John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of $230,000. If the equity multiplier is 2.5, what is its ROE? general accounting
Give correct roe for this accounting question
What is its ROE on these financial accounting question?
John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of $230,000. If the equity multiplier is 2.5, what is its ROE?
What is John wick companies ROE?
John wick company has total assets
Please give me answer general accounting
I need answer
I need answer of this question general accounting
Use the Dupont identity to solve the following. The ABC Inc. has sales of $10,500, total assets of $4600, and equity multiplier of 1.2. If its ROE is 14%, what comes closest to its net income? 398 644 773 875 537