Payments from customers received before performing services for the customers are recorded as

Aquilera, Inc., has sales of $19.6 million, total assets of $14.6 million, and total debt of $5.4 million. The profit margin is

Gnom [1K]

Answer:

a. $1,764,000.00

b. 12.08%

c. 19.17%

Explanation:

a. What is the company's net income?

Profit margin = Net income ÷ Sales

Therefore, we have:

9% = Net income ÷ $19,600,000

Net income = $19,600,000 × 9% = $1,764,000.00

Therefore, the net income of Aquilera, Inc. is $1,764,000.00

b. What is the company's Return on Assets (ROA)?

ROA = Net income ÷ Total Assets

ROA = $1,764,000 ÷ $14,600,000 = 0.120821917808219 = 12.08%

Therefore, the ROA of Aquilera, Inc. is 12.08%

c. What is the company's Return on Equity (ROE)?

Total Assets = Total Debt + Total Equity

Therefore,

Total Equity = Total Assets - Total Debt

Total Equity = $14,600,000 - $5,400,000 = $9,200,000

ROE = Net income ÷ Total Equity

ROE = $1,764,000 ÷ $9,200,000 = 0.191739130434783 = 19.17%

Therefore, the ROE of Aquilera, Inc. is 19.17%

5 0

3 years ago

How does the use of credit influence businesses and the economy?

Anarel [89]

A credit company will look at your history with credit and either accept you or deny you based on your credit score

i hope this helps..;)

5 0

2 years ago

Read 2 more answers

Monkey See. Monkey Take and<br> Humans vs Chimps

DedPeter [7]

Answer:

Monkey do

Explanation:

3 0

2 years ago

Read 2 more answers

Flounder Corporation reported net income of $331,840 in 2020 and had 186,000 shares of common stock outstanding throughout the y

m_a_m_a [10]

Answer:

Diluted earnings per share is $1.7 per share

Explanation:

The number of diluted shares from the options is calculated thus

Total number of shares from options 34,500

Actual number of shares that can be purchased

(options shares*option price/share market price)

(34,500*$11/$15) (25,300)

Diluted shares 9,200

Diluted earnings per share=net income/(outstanding common stock + diluted common stock)

net income is $331,840

outstanding common stock is 186,000

diluted common stock is 9200

diluted earnings per share=$331,840/(186,000+9200)

=$1.7 per share

3 0

2 years ago

Tom Yuppy, a wealthy investor, paid $20,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corp. A month later,

Sliva [168]

Answer:

See the attached excel file for the horizontal statements model.

Explanation:

In the attached excel file, we have:

FA = Financing activity

For event 1:

Cash = $20,000

Common stock = Number of shares * Share price at par = 1,000 * $10 = $10,000

PIC in Excess = Paid in capital in excess = Cash - Common stock = $20,000 - $10,000 = $10,000

For event 2:

Cash = Number of shares issued * Price per share = 2,000 * $2.50 = $50,000

Common stock = Number of shares * Share price at par = 2,000 * $10 = $20,000

PIC in Excess = Cash - Common stock = $50,000 - $20,000 = $30,000

Download xlsx

3 0

2 years ago