Answer:
$44,083.72
Explanation:
Given:
Debt ratio = 57%
Asset turnover = 1.12
Profit margin = 4.9%
Total equity = $511,640
Find the total debt:
Debt = debt ratio × total equity
= 0.57 * 511640
Debt = $291,634.80
Find the total assets:
Total assets = Total debt + Total equity = $291,634.80 + $511,640
Total assets = $803,274.80
Find total turnover:
Turnover = Total assets * Total asset turnover ratio
= $803,274.80 * 1.12
= $899,667.78
Now find the amout of net income:
Net Income = Turnover * Profit margin
Net Income = $899,667.78 * 4.9%
= $44,083.72
The amount of net income is $44,083.72
