None World Exports has total assets of$938,280, a total asset turnover rate of1.18, a debt-equity ratio of 0.47, and areturn on equity of 18.7 percent. What isthe firm's net income?a. $119,359.43b. $88,303.33c. $104,624.14d. $121,548.09e. $92,236.67

Step 1: Define Net IncomeA company's net income is its remainder of revenue after business expenses…

Answered: World Exports has total assets of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following data to compute each firm's net profit margin, total asset turnover, equity multiplier, and return on equity. (Note: The following dollar values are expressed in millions of U.S. dollars.) Common Equity $8,700 $10,636 $1,563 $28,141 B $5,641 $2,431 $18,158 $180 C $28,199 $10,669 $9,516 $1,496 Firm A Total Assets Net Sales Income Net Profit Margin 14.70% 0.99% Total Asset Turnover 3.22x 0.34x Referring to this data, which of the following conclusions is true about the companies' ROES? Equity Multiplier 3.23 2.64 Return on Equity Firm A's equity multiplier indicates that it has the lowest debt ratio of the three firms. Compared to firms B and C, company A's exceptional ROE performance appears to result from its superior efficiency in using its asset base and its heavily leveraged capital structure. Compared to firms B and C, company A does the best job of containing its costs and managing its tax obligations. Compared to companies A and C, company B uses more financial…
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ces Required: a. Firm D has net income of $91,936, sales of $1,436,500, and average total assets of $845,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has fet income of $174,195, sales of $2,205,000, and ROI of 11.85%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 15.80%, average total assets of $1,880,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm E has net income of $174,195, sales of $2,205,000, and ROI of 11.85%. Calculate the firm's turnover and average total assets. Note: Do not round intermediate calculations. Round "Turnover" answer to 1 decimal place. Turnover Average total assets
Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. A.Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 8.75 percent. What is its assets turnover? Round your answer to 2 decimal places. ______ times B.If the Butters Corporation has a debt-to-total-assets ratio of 65.00 percent, what would the firm’s return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. C.What would happen to return on equity if the debt-to-total-assets ratio decreased to 60.00 percent? Input your answer as a percent rounded to 2 decimal places.
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What are the annual sales for a firm with $805,853 in total liabilities, a total debt ratio of 0.84, and an asset turnover of 1.5? Numeric Response
If Roten Rooters, Inc., has an equity multiplier of 1.32, total asset turnover of 1.34, and a profit margin of 7.50 percent. What is its ROE? a. 11.94% b. 13.27% c. 14.59% d. -3.22% e. 12.74% :
Adams Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm's cost of common from reinvested earnings based on the CAPM? a. 12.72% O b. 11.99% c. 12.35% d. 11.64% e. 11.30%
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World Exports has total assets of $938,280, a total asset turnover rate of 1.18, a debt-equity ratio of 0.47, and a return on equity of 18.7 percent. What is the firm's net income? a. $119,359.43 b. $88,303.33 c. $104,624.14 d. $121,548.09 e. $92,236.67