The Rural Construction Co. has total assets of $30 million and total liabilities of $10 million. The company has a profit margin of 13.2% on sales of $50 million. What is the company's return on equity?

The Rural Construction Co. has total assets of $30 million and total liabilities of $10 million. The company has a profit margin of 13.2% on sales of $50 million. What is the company's return on equity?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

See similar textbooks

Related questions

Q: Need answer please not use ai

A: We have given, Motor Selling Price = $3,834Cost Price of motor = $2,700We know that, Markup=Selling…

Q: What are the Earnings per Share (EPS) and Return on Equity (ROE) comparisions between Nvidia and…

A: ## Nvidia vs. Microsoft: EPS and ROE Comparison Earnings per Share (EPS) 2023 Metric…

Q: If you give me wrong answer I will give you unhelpful rate

A: Step 1: Define Total EquityThe total equity of a company is a measure of the company's net worth or…

Q: None

A: Solution:- To determine the average daily balance, monthly finance charge, and the account balance…

Q: need help please

A: Step 1: Introduction to the Credit CardA credit card refers to a card that is issued by a bank to…

Q: General Accounting

A: Step 1: Define Net IncomeThe net income is the excess of revenues over expenses during the period.…

Q: Some people believe that an automated accounting system is always better than a manual system.…

A: Approach to Solving the Question:To address the question of when a manual accounting system is…

Q: Please need answer for this accounting question

A: Step 1: Define Return on AssetReturn on asset (ROA) is a common profitability ratio to assess the…

Q: None

A: Carson is 17 years old.Carson earned $15,000 from his job (this is his only income).Carson is a…

Q: Give true answer

A: The manufacturing overhead rate is a way to allocate overhead costs to products based on a specific…

Q: ch

A: Step 1: In the Balance sheet Accounts receivable are shown in full amount then Allowance for…

Q: CALCULATE CASH FLOW TO CREDITOR'S FOR fy24

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: ?

A: Explanation of Matching Principle: The matching principle is an accounting concept that requires…

Q: Builder Products, Incorporated, uses the weighted - average method of process costing. It…

A: Step 1: Calculate Equivalent Units of Production (EUP) The equivalent units of production (EUP)…

Q: A company purchases office supplies worth $3,000 on credit. Later, they pay $1,200 in cash for part…

A: Step 1: The company purchased office supplies worth $3,000 on credit, which increases both the asset…

Q: Draw Physical Data Flow Diagram (DFD) of AR System In a physical DFD, we focus on how the system…

A: Physical Data Flow Diagram (DFD) for the Accounts Receivable (AR) System, showing how different…

Q: What is the return on equity ??

A: The problem requires the determination of the return on equity. Return on stockholder's equity or…

Q: Instructions a. Prepare a statement of cash flows for 2025. b. Prepare an unclassified balance sheet…

A: Detailed explanation:Net Income $ 35,000 Adjustments : Depreciation (added back to cash flow…

Q: General Accounting

A: The company incurred an actual manufacturing overhead of $150,000 which shows that the manufacturing…

Q: Managerial Accounting

A: To determine Bravo Company's direct labor costs for the fiscal year, we can use the formula for Cost…

Q: Nardin Outfitters has a capacity to produce 12,000 of their special arctic tents per year. The…

A: Approach to solving the question: For better clarity of the solution, I have attached the Excel…

Q: The allowance for doubtful account is a:

A: Explanation of Contra-asset Account:A Contra-asset Account is an account that reduces the value of a…

Q: Correct Option

A: Explanation of Total Assets Turnover Ratio (TATO):The Total Assets Turnover Ratio is a financial…

Q: What amount will net income increase?

A: Step 1: Define SalesSales are the effective operations of a firm that are made to the various…

Q: Research Problem 1. A new client comes to you in June 2023 and indicates that she instructed her…

A: As of June 2023, the circumstances surrounding the new client indicate that her previous accountant…

Q: Hello tutor give true calculation of finance question

A: Step 1: Define Coupon PaymentA coupon payment is similar to a fixed-interest income and shares the…

Q: At the beginning of the year, Bramble Ltd. had 910 units with a cost of $7 per unit in its beginning…

A: Step 1: Record Sale on Jan. 3Transaction: Sold 690 units on account for $13 each.No entry for cost…

Q: Sach

A: The payback period of a project is the time required to recover an investment from the project. The…

Q: Financial Accounting

A: Step 1: Define Overhead CostThe term "overhead cost" refers to the costs that are incurred in the…

Q: Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In…

A: To determine the Fergusons' 2022 federal income tax payable or refund, we need to calculate their…

Q: answer must be correct or i will give down vote

A: Step 1: Calculate Total Contract RevenueStep 2: Estimate Total Contract PriceStep 3: Calculate Total…

Q: Which of the following is not a financial statement?

A: Explanation of Income Statement:The income statement is a financial statement that summarizes a…

Q: On November 16, Year 1, Clear Glass Company borrowed $20,000 from First American Bank by issuing a…

A: 3. Effective interest rate formula = (Interest cost/usable loan amount)*(number of days in a…

Q: None

A: Step 1: To solve the problem, we need to use the following formulas:Current Ratio Formula:Current…

Q: Need help with this finance question

A: What is required for the question is to solve for the long term capital gain or capital loss.…

Q: None

A: a. Owner's equity as of December 31, 2018:The accounting equation is:Assets = Liabilities + Owner's…

Q: R E Q U I R E D:Determine the amounts that would appear in the consolidated financial statements of…

A: To calculate the non-controlling interest (NCI) as of December 31, 2019, follow these…

Q: Provide answer the accounting question not use chatgpt

A: Step 1: Define Asset DisposalAsset disposal mandates the determination of the profit or loss made on…

Q: What is the degree of operating leverage?

A: Step 1: Define Operating LeverageIn management accounting, the operating leverage refers to the…

Q: Answer in step by step with explanation. Don't use Ai and chatgpt.

A: Explanation: As per Statement of Retained Earnings:Ending balance of Retained earnings = Beginning…

Q: Solve this finance question not use ai please don't

A: Step 1: Define Capital GainsCapital gains is applicable on assets which is inclusive of investments…

Q: Hello tutor provide solution for this accounting question

A: Step 1: Define Cash FlowsThe cash flows of a firm can be categorized into three types - operating…

Q: General Accounting

A: Step 1: Define InvestmentAn asset or object strongly acquired with the objective of increasing…

Q: I need do fast typing clear urjent no chatgpt used i will give 5 upvotes full explanation with…

A: Detailed explanation:

Q: Need help with this accounting question

A: Step 1: Understand the formula for Cost of Goods Manufactured (COGM)Step 2: Substitute the known…

Q: Need General Finance Question Solution

A: The problem requires the determination of the manufacturing overhead rate. A manufacturing overhead…

Q: Financial Accounting

A: FORMULAS:ROE= Net Income/ Stockholders' EquityNet Income= Sales x profit marginAsset Turnover =…

Q: kskgh

A: Approach to solving the question: For better understanding, I have attached the solution in both…

Q: Don't use AI.

A: 1. Sales Calculation: Under variable costing, we will calculate sales by multiplying the units…

Q: Catena's Marketing Company has the following adjusted trial balance at the end of the current year.…

A: Total assets are calculated by adding up all the assets listed in the trial balance. In this case,…

Question

What is the company's return on equity?

The Rural Construction Co. has total
assets of $30 million and total liabilities
of $10 million. The company has a profit
margin of 13.2% on sales of $50 million.
What is the company's return on
equity?

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

What is locals net profit margin?
What is its profit margin?
Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding depreciation) = $5 million;depreciation = $1.4 million; other operating expenses = $2 million;interest expense = $1 million. If the tax rate is 25%, what is NOPAT,the net operating profit after taxes? ($1.2 million)
What is keys' profit margin?
Local Co. has sales of $10.3 million and cost of sales of $6.1 million. Its selling, general and administrative expenses are $460000 and its research and development is $1.1 million. It has annual depreciation charges of $1.1 million and a tax rate of 25% . a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? d. If Local Co. had an increase in selling expenses of $270000, how would that affect each of its margins?
Local Co. has sales of $10.9 million and cost of sales of $5.9 million. Its selling, general and administrative expenses are $500,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.4 million and a tax rate of 25%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? a. What is Local's gross margin? Local's gross margin is _____%.
Mari Mari Berhad has sales of RM29,000, total assets of RM17,500, and total debt of RM6,300. If the Net Profit Margin is 9%; a) What is the Net Income ? b) What is the Return on Asset ? c) What is the Return on Equities ?
Local Co. has sales of $10.4 million and cost of sales of $6.3 million. Its selling, general and administrative expenses are $490,000 and its research and development is $1.2 million. It has annual depreciation charges of $1.2 million and a tax rate of 28%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? a. What is Local's gross margin? Local's gross margin is%. (Round to two decimal places.)
Local Co. has sales of $10.7 million and cost of sales of $6.4 million. Its selling, general and administrative expenses are $450,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 million and a tax rate of 25%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? d. If Local Co. had an increase in selling expenses of $330,000, how would that affect each of its margins? e. If Local Co.had interest expense of $770,000, how would that affect each of its margins? a. What is Local's gross margin? Local's gross margin is enter your response here %. (Round to one decimal place.) Part 3 b. What is Local's operating margin? Local's operating margin is enter your response here %. (Round to one decimal place.) Part 5 c. What is Local's net profit margin? Part 6 Local's net profit margin is enter your response here %. (Round to two decimal places.) d. If Local Co. had an increase in…
Local Co. has sales of $10.5 million and cost of sales of $5.5 million. Its selling, general and administrative expenses are $480,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 million and a tax rate of 25%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? a. What is Local's gross margin? Local's gross margin is 47.62 %. (Round to two decimal places.) b. What is Local's operating margin? Local's operating margin is 27.71%. (Round to two decimal places.)
Thompson Trucking has $9 billion in assets, and its tax rate25%. Its basic earning power (BEP) ratio is 20%, and its returnon assets (ROA) is 5.25%. Whatis its time interest earned (TIF)ratio? Round you answer to twodecimal places.
Local Co. has sales of $10.4 million and cost of sales of $6.1 million. Its selling, general and administrative expenses are $540,000 and its research and development is $1.2 million. It has annual depreciation charges of $1.2 million and a tax rate of 35%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? a. What is Local's gross margin? Local's gross margin is %. (Round to one decimal place.) b. What is Local's operating margin? Local's operating margin is %. (Round to one decimal place.) c. What is Local's net profit margin? Local's net profit margin is %. (Round to two decimal places.)