Question
(Evaluating profitability) The Malia Corporation had sales in 2019 of $60 million, total assets of $46 million, and total liabilities of 15 million. The interest
(Evaluating profitability) The Malia Corporation had sales in 2019 of $60 million, total assets of $46 million, and total liabilities of 15 million. The interest rate on the companys debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 11.8 percent. What were the companys operating income and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
The operating profits were $ ________. (Round to the nearest dollar.)
The net income was $ ________. (Round to the nearest dollar.)
The operating return on assets was ______ %. (Round to one decimal place)
The return on equity was______ %. (Round to one decimal place)
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