Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with this question please. thank you. A firm has total account receivable of $1500, which represents 10 days' sales. Average total assets are

please help with this question please. thank you.
image text in transcribed
image text in transcribed
A firm has total account receivable of $1500, which represents 10 days' sales. Average total assets are $75000. The firm's operating profit margin is 10%. Assume that 1 year has 365 days. This firm's ROA is equal to A) 2.36% B) 10.95% C) 3.65% D) 7.30% E) 6.32% Determine net income for the following firm: $500,000 sales, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $60,000 interest expense, no changes in working capital, and a tax rate of 40%. The net income of this company is A) $64,000 B) $78,000 C) $36,000 D) $60,000 E) $40,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Future For Investors

Authors: Jeremy Siegel

1st Edition

140008198X, 978-1400081981

More Books

Students also viewed these Finance questions