Question
A firm had the following income statement for last year and they finance themselves with EQUAL amounts of liabilities and owner's equity. Calculate the firm's
A firm had the following income statement for last year and they finance themselves with EQUAL amounts of liabilities and owner's equity. Calculate the firm's Return on Assets (ROA) if its average Total Asset Last Year were $25,000. Round to 2 decimal points, do not include the % sign.
| Sales | $ 37,611 |
| Less: COGS | 20,889 |
| Gross Profit | 16,722 |
| Less: Operating Exp | 11,483 |
| Less: Depreciation | 1,575 |
| Operating Profit (EBIT) | 3,664 |
| Less: Interest Exp | 1,400 |
| Earnings Before Taxes | 2,264 |
| Less: Tax Exp | 475 |
| Earnings After Taxes | $ 1,789 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Contemporary Quantitative Finance
Authors: Carl Chiarella, Alexander Novikov
2010th Edition
3642034780, 978-3642034787
