Last year Ross Inc. had sales of $330,000 and a net income of $20,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 40.00%. Based on the DuPont equation, what was the ROE? A. 10.41% B. 14.80% C. 13.33% D. 12.63% E. 9.06%

Q: Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets…

A: As per the DuPont analysis, the return on equity can be found by using following formula:

Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets…

A: (1) Net profit margin = (Net income / Sales ) x 100=>Net profit margin…

Q: Please give answer for this question

A: To find the equity, we use the debt-to-equity ratio formula: [Debt-to-Equity Ratio=Total EquityTotal…

Q: Need answer

A:

Q: Question: Lee Sun's has sales of $3,500, total assets of $3,200, and a profit margin of 5 percent.…

A: Step 1: Given, Lee Sun's has sales = $3,500 at a profit margin = 5%, Total Assets = $3,200,Total…

Q: Y3K Inc. has sales of $5783, total assets of $2604, and a debt-equity ratio of .75. If its Return on…

A: Profit margin = Net Income = Return on equity * Total equity

Q: A firm has the following accounts; sales = $36,700,000, total debt = $9,870,000. The firm has the…

A: ROA refers to return on assets. It is a metric in ratio analysis to evaluate the efficiency of total…

Q: A firm has a long-term debt–equity ratio of 0.50. Shareholders’ equity is $2.0 million. Current…

A: Debt equity ratio- 0.50 Equity - $2.0 million CA- $ 320,000 Total assets - $3,200,000 Current ratio…

Q: Help with this Question

A: To find the company's net income, we can use the relationship between Return on Equity (ROE), net…

Q: Need Help with this Question

A: Step 1: To find the return on equity (ROE), we can use the following formula: ROE=EquityNet…

Q: The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs…

A: The internal growth rate is a financial measure that analyzes a company's ability to expand its…

Q: Tiggie's Dog Toys, Incorporated, reported a debt-to-equity ratio of 2.00 times at the end of the…

A: A ratio analysis is a mathematical relationship between two variables that is used to determine the…

Q: intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit…

A: Profit Margin: It is a measure of profitability for the business. It is the ratio of net profit to…

Q: Sales Costs Taxable income Taxes (21%) Net income $ 16,000 9,600 $6,400 1,344 $5,056 Current assets…

A: The sustainable growth rate indicates the growth rate an entity can achieve without changing the…

Q: Orono Corp.'s sales last year were $465,000, its operating costs were $362,500, and its interest…

A:

Q: QUESTION: CATHERINE'S CONSULTING HAS NET INCOME OF $4,400 AND TOTAL EQUITY OF $39,450. THE…

A: Given Data:Net Income: $4,400Total Equity: $39,450Debt-Equity Ratio: 1Step 1: Calculate Total…

Q: Zoe's Dog Toys Inc. reported a debt to quity ratio of .70 times st thr end of 2008. If the firm's…

A: Debt to equity ratio is that which shown the relationship between the equity and debt portion in…

Q: If Silas 4-Wheeler, Incorporated has an ROE of 17.06 percent, equity multiplier of 1.60, and profit…

A: Total asset turnover: A financial ratio that measures a company's efficiency in generating revenue…

Q: During 20Y5, Cone Corporation reports average total assets of $175,000, sales revenues of $218,750,…

A: The debt to equity ratio is calculated as total liabilities divided by Total shareholder's equity.…

Q: Provide answer

A: Approach to solving the question: To solve the problem ->Understand the relationship : Recognize…

Q: The Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .34 and a…

A: Profit Margin = Net Profit/Sales So Net Profit = Sales * Profit Margin    ROE = Net Profit/Equity So…

Q: What is the WACC for the following company with: Debt rate: 7% Cost of Equity: 11% Percentage…

A: WACC WACC shows the after-tax cost of the capital raised from all sources by a company. It shows…

Q: Green Fire Company has a debt-equity ratio of 1.7. Return on assets is 14.25 percent, and total…

A: Here, Debt Equity Ratio is 1.7 Return on Assets is 14.25% Total Equity is $350,000

Q: Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets…

A: Du-Pont: A Du-pont analysis is the equation which calculates the return on equity by multiplying net…

Q: The Merriam Company has determined that its return on equity is 15 percent. Management is interested…

A: Profit margin is the ratio between net income and sales revenue. It is calculated by dividing net…

Q: Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances…

A: Return on equity (ROE) is the relationship between a company's profit and the investor's return.

Q: Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year- end…

A: Total assets turnover ratio = Sales / Total AssetsTotal assets turnover ratio = $325,000 /…

Q: Hillside Dairy's debt to assets ratio is 40. The company's return on assets is 10 percent. The…

A: Return on assets = 10%Net income = $500,000Using the formula for return on assets, we can calculate…

Q: Cecilia Company reported net income of $1,250,000. The average total liabilities were $4,302,500 and…

A: Return on assets is calculated by dividing operating income after tax by average total assets. The…

Q: Last year Urban Forests Corp. had $507,500 of assets, $1,905,700 of sales, $410,200 of net income,…

A: Total Assets = $507,500Sales = $1,905,700Net Income = $410,200Debt-to-total assets ratio = 5%We need…

Q: Answer

A: Step 1:   Given -       Debt equity ration d/e = 45 % = 0.45           Total debt d = 11700 So 11700…

Q: long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a…

A: Net fixed assets:Tangible, long-term assets that a business owns and utilizes to produce goods or…

Q: Last year, Harrington Inc. had sales of $325,000 and a net income of $19,000.  Its year-end assets…

A: Total calculate the return on equity we will use the below formula   ROE = Net income/Equity Where…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.