Answer: I think its $8,100
Explanation:
i hope it helps
Answer:
Net Income is $485.4
Explanation:
According to the accounting equation
Assets = Equity + Liabilities
So putting value of assets = 3,525, and assuming equity = x, then:
3252 = Liabilities + x
Liabilities = 3252 - x
Now putting this value in the debt to equity formula,
Debt / Equity = 0.34
(3252 - x) / x = 0.34
3252 - x = 0.34x
1.34x = 3252
x = 3252 / 1.34 = $2427 This is the value of equity.
Now
Return on Equity = Net Income / Equity
and return on equity is $2427, so by putting values in the equation, we have:
0.20 = Net Income / 2427
Net Income = $485.4
Answer:
ROE would have changed by 8.52%
Explanation:
First we calculate the current ROE using Dupont Equation which gives ROE as,
ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity
or
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
- Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%
The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.
- New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
- The ROE would have changed by 17.32 - 8.80 = 8.52%
Answer:
Basic earning per share = $3.69
Explanation:
Earning per share (EPS) = earnings available to ordinary shareholders/ number of ordinary shares
Number of ordinary shares = 390,000 × 2 = 780,000 units
Net income 2,900,000
Preferred dividend <u> ( 24,000)</u>
Earnings available to shareholders <u>2,876,000</u>
Number of ordinary shares 780,000 units
Earnings per shares = $2,876,000/780,000 units
= $3.69
Answer:
62,200 allowance ending
Explanation:
allownce 5,000 credit
<u>Because the bad debt is calculate over the sales,</u> the bad debt expense is the result of that estimated, without considering the beginning balance of the allowance.
22% of net credit sales will be uncollectible:
260,000 x 22% = 57,200
<u>Now ending balance will be beginning + uncollectible for the period</u>
5,000 beginning
57,200 uncollectible for the period
62,200 allowance ending
