None The operating profit margin (EBIT/sales) of ABC, Inc. is18%, its TATO ratio (Sales/TA) is 1.50x, and its sales are$3,000,000. ABC's ROE is double its return on assets(ROA). ABC pays 10% interest on all debt and its tax rateis 40%. Calculate the company's ROA and ROE.

Given:- Operating profit margin (EBIT/Sales) = 18%- Total Asset Turnover ratio (TATO) = Sales/Total…

Answered: The operating profit margin…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Need help with this question
Give true answer
Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %
Lone Star Plastics has the following data:Total Assets: R100,000 ; Net Profit margin: 6.0%;Tax rate: 40% ; Debt ratio: 40.0% of which 30% is interest bearing debt;Interest rate: 8.0% : Total assets turnover: 3.0.Calculate Lone Star's EBIT (Earnings before Interest and Tax).
White Waters, Inc., has sales of $34 million, total assets of $48 million, and total debt of $11 million with a 6% average interest rate. If the profit margin is 13 percent, the ROA is ______ %. Round it to two decimal places.
The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?
Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP) ratio is 10%, and its Return on Assets (ROA) is 2%. What is its Times-Interest-Earned (TIE) ratio?
Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What is its ROA? (Enter your answer as a whole percent.) ROA 20 % If its debt-equity ratio is 1, its interest payments are $9,600 and taxes are $11,200, and b. EBIT is $28,000, what is its ROE? (Do not round intermediate calculations. Enter your answer as a whole percent.) ROE 15.56 %
The Blue Jay Corporation has annual sales of $5,200, total debt of $1,500, total equity of $2,800, and a profit margin of 8 percent. What is the return on assets? a. 8.50 percent b. 10.55 percent c. 9.67 percent d. 7.89 percent e. 12.22 percent.Answer this question
What is Highfield profit margin? General accounting
Need help of Accounting Expert
Terry's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 21 percent and the equity multiplier is 1.6. Please use the Dupont Identity to compute the return on equity.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

The operating profit margin (EBIT/sales) of ABC, Inc. is 18%, its TATO ratio (Sales/TA) is 1.50x, and its sales are $3,000,000. ABC's ROE is double its return on assets (ROA). ABC pays 10% interest on all debt and its tax rate is 40%. Calculate the company's ROA and ROE.