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
SSSSS [86.1K]
3 years ago
13

Saunders, Inc., has a ROE of 18.7 percent, an equity multiplier of 2.53 times, sales of $2.75 million, and a total assets turnov

er of 2.7 times. What is the firm's net income? (Round your final answer to two decimal places.)
Business
2 answers:
Elena-2011 [213]3 years ago
5 0

Answer:

Net Income = $75,281.80

Explanation:

Given that

Total assets turnover = sales/total assets

Where

Sales = 2.75 million

Asset turnover = 2.7

Thus

Total assets = 2750000/2.7

= $1,018,518.52

Also,

EM.= Total assets/equity

Where

EM = 2.53

Assets = $1,018,518.52

Thus,

Equity = 1,018,518.52/2.53

= $ 402,576.49

Finally,

Recall that

ROE = Net Income ÷ Equity

Therefore,

Net income = ROE × Equity

Where

ROE = 18.7 % = 0.187

NI = 0.187 × 402576.49

= $75,281.80

pashok25 [27]3 years ago
4 0

Answer:

Explanation:

Given:

Asset turnover = 2.7 times

ROE = 18.7 %

Sales = $2.75 million

Equity multiplier, EM = 2.53 times

Return on asset, ROA

ROE = ROA × EM

18.7/100 = ROA × 2.53

ROA = 0.0739

ROE = Net Income/Shareholders' Equity

Asset turnover, AT = Net sales/total asset

Total asset = net sales ÷ AT

= 2,750,000 ÷ 2.7

= $1,018,500

ROA = Net income/total assets

Net income, NI = 0.0739 × $1,018,500

= $ 75,270

You might be interested in
How can investors receive compounding returns? aby selecting a savings account that has a higher interest rate bby investing the
Novay_Z [31]
Investors can receive compounding returns by investing their earnings back into their original investment. For example, if they earn $10 from a stock they invested in, they would place that $10 back into the stock that earned them that money.
7 0
3 years ago
What is reality???????????????????????????????
Virty [35]

Answer:

<h3>Reality is a state of consciousness and awareness whereby one can feel and comprehend his himself and his mind and his soul to live in.</h3>

<h3>WARNING: if this is your exam question, please you might not pass with this answer. lol</h3>

Hope this helps

Good luck ALWAYS ✅.

8 0
2 years ago
The Director of Information Technology for the city of Tampa, Florida formed a company to sell computer supplies and software. A
yanalaym [24]

Answer:

1. Recording

2. Authorization

Explanation:

Based on the scenario described above, it can be concluded that the control issue, in this case, arose because the Director had both RECORDING and AUTHORIZING duties.

This is because, for the Director of Information Technology for the city of Tampa, Florida not to have been convicted by a jury regardless of what she did, she must have followed the Segregation of Duties accordingly. This is a means of reducing the errors or fraudulent activities of employees.

And given she has a RECORD of transactions to prove her innocence and at the same time, she has AUTHORIZATION or the approval to supply the software, and hence, she is not guilty of the accusation.

3 0
3 years ago
Which of the following terms refers to a goal-oriented process that is directed toward ensuring that organizational processes ar
Feliz [49]

Answer:

Performance management

Explanation:

Performance management is a corporate management tool that aids managers to monitor and measure employees' work. Performance management's goal is to create an enabling environment where people can perform their to the best of their abilities to produce quality result.

Performance management is the activities and processes that focus mainly on areas to maintain and improve employee performance in line with an organisation's objectives.

8 0
4 years ago
Read 2 more answers
Ways in which landscape can be created .plz answer this ​
Aliun [14]

Answer:

finding land and making the land into wha ever yu want

Explanation:

hopes this helps

8 0
3 years ago
Other questions:
  • What does Trump want to do with outer space?<br> this is a cx debate question<br> I'm desperate!!!!
    11·1 answer
  • A company tries to serve the segments whose needs match their _______, and in doing so hope to make very happy and loyal custome
    11·2 answers
  • Which of the following statements about the cost of capital is incorrect? Select one: a. A company's target capital structure af
    7·1 answer
  • A new purchasing system for just-in-time production requirements has been proposed. Users want access to current master file inf
    9·1 answer
  • A toothpaste company has different products for children and adults. It applies a different marketing strategy for each of these
    8·1 answer
  • Pls help me and thank youuu!!!
    10·2 answers
  • WILL BE MARKED BRAILIEST!!
    9·1 answer
  • Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common st
    5·1 answer
  • What would you do if you can stop time
    12·2 answers
  • Which resources does the us department of labor provide or sponsor? check all that apply. a state’s department of education sear
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!