For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million.Required:Calculate Settles Incorporated's margin and net income.Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.Calculate Settles Incorporated's return on equity.Note: Round your answer to 1 decimal place. ### Financial Performance Analysis of Settles Incorporated for FY 2022For the fiscal year ending on December 31, 2022, Settles Incorporated achieved a Return on Investment (ROI) of 10.5%. The company's total sales for the year amounted to $9 million, and it reported an average asset turnover ratio of 2.1. The average stockholders' equity during the same period was $2.8 million.**Required Calculations:**a. **Calculating Margin and Net Income:**- Margin should be rounded to one decimal place.- Net income should be entered in dollars. For example, $5 million should be entered as 5,000,000.b. **Calculating Return on Equity (ROE):**- The ROE should be rounded to one decimal place.**Input Fields:**1. **Margin (%)**: - (Field for Margin calculation)2. **Net Income ($)**: - (Field for Net Income calculation)3. **Return on Equity (%)**: - (Field for ROE calculation)These calculations will assist in evaluating Settles Incorporated's profitability and efficiency in using its equity to generate profits.![Text description image](#)#### Notes:- The Margin percentage reflects how much profit Settles Incorporated made for each dollar of sales. - The Net Income in dollars signifies the actual profit made after all expenses.- Return on Equity (ROE) measures how effectively the company used the equity from its shareholders to earn profits.Users can input the respective values in the designated fields to comprehend the financial health of Settles Incorporated better.

ROI = Net income / Average total AssetsDivision of Net income with Average total Assets derives the…

Answered: or the year ended December 31, 2022,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Required:

Calculate Settles Incorporated's margin and net income.
Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.
Calculate Settles Incorporated's return on equity.
Note: Round your answer to 1 decimal place.

### Financial Performance Analysis of Settles Incorporated for FY 2022

For the fiscal year ending on December 31, 2022, Settles Incorporated achieved a Return on Investment (ROI) of 10.5%. The company's total sales for the year amounted to $9 million, and it reported an average asset turnover ratio of 2.1. The average stockholders' equity during the same period was $2.8 million.

**Required Calculations:**
a. **Calculating Margin and Net Income:**
- Margin should be rounded to one decimal place.
- Net income should be entered in dollars. For example, $5 million should be entered as 5,000,000.

b. **Calculating Return on Equity (ROE):**
- The ROE should be rounded to one decimal place.

**Input Fields:**
1. **Margin (%)**:
- (Field for Margin calculation)

2. **Net Income ($)**:
- (Field for Net Income calculation)

3. **Return on Equity (%)**:
- (Field for ROE calculation)

These calculations will assist in evaluating Settles Incorporated's profitability and efficiency in using its equity to generate profits.

![Text description image](#)

#### Notes:
- The Margin percentage reflects how much profit Settles Incorporated made for each dollar of sales.
- The Net Income in dollars signifies the actual profit made after all expenses.
- Return on Equity (ROE) measures how effectively the company used the equity from its shareholders to earn profits.

Users can input the respective values in the designated fields to comprehend the financial health of Settles Incorporated better.

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