Isolation Company has a debt equity ratio of .80. Return on assets is 7.9 percent, and total

Isolation Company has a debt– equity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000. What is the equity multiplier? Return on equity? Net income?

Just Dew It Corporation reports the following balance sheet information for 2011 and 2012. Use this information to work Problems 13 through17.

Transcribed Image Text:

JUST DEW IT CORPORATION 2011 and 2012 Balance Sheets Assets Liabilities and Owners' Equity 2011 2012 2011 2012 Current assets Current liabilities $ 9,279 $11,173 Accounts payable 41,060 $ 43,805 Cash Accounts 23,683 25,760 Notes payable 42,636 46,915 16,157 16,843 $ 57,217 60,648 Total Inventory Total $ 75,598 $83,848 S 40,000 35,000 Long-term debt Owners' equity Common stock and paid-in surplus 50,000 $ 50,000 200,428 236,167 $250,428 $286,167 Retained earnings Net plant and equipment $272,047 $297967 Total Total liabilities and Total assets S347,645 $381,815 owners' equity $347,645 $381,815