Shelton. Inc.. has sales of $18 million, total assets of $16.5 million, and tota

Question

Shelton. Inc.. has sales of $18 million, total assets of $16.5 million, and total debt of $9.4 million. Assume the profit margin is 8 percent. 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.) Net income $ 1440000 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.) ROA 8.73 % 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.) ROE %

Explanation / Answer

Net Income Sales* Profit Margin 18*8% Net Income $1,440,000 Return on Assets Net Income/ Assets 1440000/16500000 Return on Assets 8.73% Shareholders Equity = Assets- Debts Shareholders Equity = 7.1 ROE = Net Income/ Shareholders Equity 1440000/7100000 ROE = 20.28%

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