Aquilera, Inc., has sales of $18.2 million, total assets of $13.2 million, and t

Question

Aquilera, Inc., has sales of $18.2 million, total assets of $13.2 million, and total debt of $4 million. The profit margin is 10 percent. What is the company's net income? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net income What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) ROA What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) ROE

Explanation / Answer

Answer =1) CALCULATION OF NET INCOME Particulars AMOUNT   Sales $        1,82,00,000 Profit Margin is 10% So Net income = $            18,20,000 ($ 18,200,000 X 10%) Answer =2) ROA = Net income / Total Assets ROA = Net Income = $            18,20,000 Divide By "/"By Total Assets = $        1,32,00,000 ROA =                      0.1379 ROA in % 13.79% Answer =3) ROE = Net income / Total Shareholder's Equity Shareholder's Equity = Total Assets - total Debt Shareholder's Equity = 13.2 Million - 4 Million Shareholder's Equity = 9.2 Million ROE = Net Income = $            18,20,000 Divide By "/"By Shareholder's Equity = $            92,00,000 ROE =                      0.1978 ROE in % 19.78%

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