In 2012, Jake\'s Jamming Music, Inc., announced an ROA of 8.52 percent, ROE of 1

Question

In 2012, Jake's Jamming Music, Inc., announced an ROA of 8.52 percent, ROE of 14.10 percent, and profit margin of 12.1 percent. The firm had total assets of $9.1 million at year-end 2012.

Calculate the 2012 value of net income available to common stockholders for Jake’s Jamming Music, Inc. (Enter your answers in dollars not in millions and round to the nearest whole dollar.)

Calculate the 2012 value of common stockholders’ equity for Jake’s Jamming Music, Inc.(Round your answer to the nearest dollar amount.)

Calculate the 2012 value of net sales for Jake’s Jamming Music, Inc. (Round your answer to the nearest dollar amount.)

Calculate the 2012 value of net income available to common stockholders for Jake’s Jamming Music, Inc. (Enter your answers in dollars not in millions and round to the nearest whole dollar.)

Explanation / Answer

1)ROA= NEt Income/Total assets
8.52=NI/9.1
Net Income = 775,320   ----- Answer

2)ROE= NEt Income/Equity
14.10 = 775,320/Equity
Equity =  5,498,723 ---------- Answer

2) profit margin = Net Income / Sales
12.1 = 775,320/sales
SAles = 6407603 ----- Answer

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