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8 September, 20:59

Aquilera, Inc., has sales of $19.6 million, total assets of $14.6 million, and total debt of $5.4 million. The profit margin is 9 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 %

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  1. 8 September, 21:02
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    a. $1,764,000.00

    b. 12.08%

    c. 19.17%

    Explanation:

    a. What is the company's net income?

    Profit margin = Net income : Sales

    Therefore, we have:

    9% = Net income : $19,600,000

    Net income = $19,600,000 * 9% = $1,764,000.00

    Therefore, the net income of Aquilera, Inc. is $1,764,000.00

    b. What is the company's Return on Assets (ROA) ?

    ROA = Net income : Total Assets

    ROA = $1,764,000 : $14,600,000 = 0.120821917808219 = 12.08%

    Therefore, the ROA of Aquilera, Inc. is 12.08%

    c. What is the company's Return on Equity (ROE) ?

    Total Assets = Total Debt + Total Equity

    Therefore,

    Total Equity = Total Assets - Total Debt

    Total Equity = $14,600,000 - $5,400,000 = $9,200,000

    ROE = Net income : Total Equity

    ROE = $1,764,000 : $9,200,000 = 0.191739130434783 = 19.17%

    Therefore, the ROE of Aquilera, Inc. is 19.17%
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Home » Business » Aquilera, Inc., has sales of $19.6 million, total assets of $14.6 million, and total debt of $5.4 million. The profit margin is 9 percent. What is the company's net income? (Enter your answer in dollars, not millions of dollars, e. g., 1,234,567.
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