A fire has destroyed a large percentage of the financial records of the Inferno

Question

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.7 percent. Sales were $1,795,000, the total debt ratio was .33, and total debt was $660,000.

What are the total assets? (Do not round intermediate calculations.)

What is the total equity? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).)

What is the net income? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).)

What is the return on assets (ROA)? (Round your answer as directed, but do not use the rounded numbers in intermediate calculations. Enter your answser as a percent rounded to 2 decimal places (e.g., 32.16).)

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.7 percent. Sales were $1,795,000, the total debt ratio was .33, and total debt was $660,000.

Explanation / Answer

Statement showing computations Particulars Amount Debt                      660,000.00 Debt Ratio                                   0.33 Total Assets = 660,000/.33                   2,000,000.00 Total Equity = 2,000,000- 660,000                   1,340,000.00 Return on Equity 16.70% Net income = 1340,000*16.7%                      223,780.00 Return on Assets = 223,780 / 2,000,000 11.19%

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