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Here and Gone Inc has sales of 18 million total assets of 13 million and total debt of 3.8 million if the profit margin is 8 percent what is net income what is ROA what is ROE?
Dani8313
Profit margin = Net income / Sales
.08 = Net income / $18,000,000
Net income = $1,440,000
Now we can calculate the return on assets as:
ROA = Net income / Total assets
ROA = $1,440,000 / $13,000,000
ROA = 0.1108 or 11.08%
We do not have the equity for the company, but we know that equity must be equal to total assets minus total debt, so the ROE is:
ROE = Net income / (Total assets - Total debt)
ROE = $1,440,000 / ($13,000,000 - 3,800,000)
ROE = 0.1565 or 15.65%
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JCPenney had net sales of 24750 million cost of goods sold of 16150 million and net income of 837 million is Its gross margin ratio equals 3.4?
1,000,000,000,000,000,000
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