Sav Question 6 for valuer 28 points The Dahia Company has net income of $166,850

Question

Sav Question 6 for valuer 28 points The Dahia Company has net income of $166,850. There are ourrently 32 25 days sales in receivables Total assets are $855,000, total receivables are $148,000, and the debt-equity ratio is 60. What is the company's proft margin? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, ..g.32.16.) Proft margin What is the company's total asset tuenover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g,32.16) Total asset turnover what is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e 9-3216.) ROE smes References Book & Resources Worksheet Lnaning Oojctive 03-03 Assess the etemnants of a ms proftabily and growth Difficulty: 2 Intermediate Section: 3.2 Rato Anlyss Check.cy w MacBook Ai

Explanation / Answer

Days Sales in receivables =365/Receivable turnover ratio

32.25 =365/Receivable turnover ratio

Receivable turnover ratio=365/32.25

Receivable turnover ratio=Sales/Account Receivables

365/32.25=Sales/148000

Sales=1675038.76

Profit Margin =Netincome/Sales=166850/1675038.76=9.96%

Total Asset Turnover Ratio

Sales/Total Asset=1675038.76/855000=1.96

Company ROE

Profit Margin*Total Asset Turnover*(1+Debt Equity Ratio)

9.96%*1.96*(1+.60)

=31.22%

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.