Q5

5.With sales of $228,155, total assets of $132,921, profit margin of 5.4%, and equity multiplier of 1.2, what would be the ROE? Convert the profit margin rate to a percent and report it to the nearest hundredth as in xx.xx % but not entering the percent sign. You would need to calculate the rate to four places before multiplying by 100 to convert to a percent.

6.Calculate net income if sales are $130,196, operating cost $59,397, depreciation is $18,408, and the firm also borrowed $10,000 at 7% interest and has a tax rate of .35. Answer to the nearest cent as in xx.xx leaving out the dollar sign.