1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Jet001 [13]
3 years ago
15

DTO, Inc., has sales of $24 million, total assets of $21.1 million, and total debt of $8.2 million. Assume the profit margin is

10 percent. a. What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Scrat [10]3 years ago
4 0

Answer:

a. Net income = Sales * profit margin

= $24 million * 10%/100

= $2.4 million

b.  ROA = Profit / Total Assets

= $2.4 million / $21.1 million

= 0.11374

= 11.374%

c.  ROE = Profit / (Total Assets - Debt)

= $2.4million / ($21.1million - $8.2million)

= $2.4million / $12.9 million

= 0.186

= 18.6%

You might be interested in
Pretax accounting income for the year ended December 31, 2021, was $53 million for Truffles Company. Truffles' taxable income wa
Anuta_ua [19.1K]

Answer:

$17,820,000

Explanation:

The amount of tax due to government authorities for the current period is referred to as current portion of income tax expense. It is calculated by product of current or enacted tax rate and taxable income for the period

Taxable income for 2021 = $66million

Enacted or current tax rate for 2021 = 27%

Current portion of income tax expense for 2021 = Taxable income x current tax rate = $66 million x 27% = $17,820,000million

Hence Current portion of income tax expense = $18 million

4 0
3 years ago
During January, Luxury Cruise Lines incurs employee salaries of $1.2 million. Withholdings in January are $91,800 for the employ
Zarrin [17]

Answer: Please see below for answer

Explanation:

Journal for employee salary and withholdings

Particulars                           Debit                  Credit

Salaries Expense               $1, 200,000

FICA tax Payable                                              $91,800

Federal Income Tax Withholding Payable      $180,000

State Income Tax Withholding Payable           $75,000

Health Insurance Payable                                  $12,000

Salaries Payable                                               $841,200

Journal to record employer provided fringe benefits for January

Particulars                                  Debit                                  Credit

Salaries expense(fringe benefits)$ 36,000

Accounts payable to blue cross shield                           $36,000

Journal to record employer payroll taxes

Particulars                           Debit                     Credit

Payroll Tax Expense              $166, 200

FICA tax Payable                                                       $91,800

unemployment tax payable                                        $74,400

6 0
3 years ago
High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA
Vika [28.1K]

Answer:

(a)

5,500 units

(b)

6,125 units

Explanation:

First, we need to calculate the per unit selling price.

                        2007       2008

Unit sales        5,000      8,000

Sales revenue $60,000 $96,000

Selling Price    $12           $12

Now we need th separate the vairbale and fixed cost from total expense using high low method

Variable cost = ( Higher activity Expense - Lower activity Expense ) / ( Higher activity - Lower activity )

Variable cost = ( $76,000 - $64,000 ) / ( 8,000 units - 5,000 units )

Variable cost = $12,000 / 3,000 units = $4 per unit

Fixed cost = $76,000 - ( $4 x 8,000 units ) = $44,000

Contribution Margin = Selling Price - Variable cost = $12 - $4 = $8

(a)

Breakeven Point = Fixed Cost  / Contributin margin per unit

Breakeven Point = $44,000 / $8 = 5,500 units

(b)

Target sales = ( Fixed cost + Desired Profit ) / Contribution margin per unit

Target sales = ( $44,000 + $5,000 ) / $8 = 6,125 units

8 0
3 years ago
McCarthy Industries has two sales territories-East and West. Financial information for the two territories is presented below: E
kirill [66]

Answer:

Decrease in income by $227,000

Explanation:

The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;

= -Sales + Direct cost + fixed cost - salary per year

= -$980,000 + $343,000 + ($450,000 - $40,000)

= -$980,000 + $343,000 + $410,000

= -$227,000

Hence, the amount of the change in the income in the case when the east territory is eliminated is -$227,000

Decrease in income by $227,000

3 0
3 years ago
When scheduling the audit work to be performed on an engagement, the auditors should consider confirming accounts receivable bal
Dvinal [7]

Answer:

The correct answer is letter "B": Internal control over receivables is good.

Explanation:

Only in the case the internal control of an organization is well-established enough so those account receivables (AR) are paid according to the terms agreed between the organization and its debtors, auditors could consider the balance of the account receivables at a provisional date.

7 0
3 years ago
Other questions:
  • Dirty Don's Bicycle Shop is current financed with 100% equity. The firm currently has 100,000 shares of common stock outstanding
    5·1 answer
  • What term refers to the productivity benefits companies receive from
    10·2 answers
  • At December 31, 2017, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager had 450,000 shares of prefe
    5·1 answer
  • Why is research and development an integral part of the designing and producing process of an aerospace product? Select the best
    15·2 answers
  • Cave Hardware's forecasted sales for April, May, June, and July are $150,000, $250,000, $100,000, and $290,000, respectively. Sa
    10·1 answer
  • Write a critical evaluation of your learning outcome. In your response, consider: 1. Consider the content of this class as they
    7·1 answer
  • After a product recall triggered by salmonella contamination and repeated violation citations by the health department, Mc Burge
    13·1 answer
  • Strafford Inc. elected to use the nature of distribution approach for distributions from its equity-method investment purchased
    12·1 answer
  • Bank charged interest on overdraft Rs. 500 journal entry​
    11·1 answer
  • project water has an initial cost of 639,700 and projected cash flow of 288,000 319,000 and 165,000 for years 1 through 3 respec
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!