Solved:
Answered by AI, Verified by Human Experts
Denver, Incorporated, has sales of $14.2 million, total assets of $11.3 million, and total debt of $4.9 million. Assume the profit margin is 5 percent. a. What is net income? (Do not round intermediate calculations and enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)a. Net income: ___b. ROA: ___c. ROE: ___
Denver, Incorporated, has sales of $14.2 million, total assets of $11.3 million, and total debt of $4.9 million. Assume the profit margin is 5 percent. a. What is net income? (Do not round intermediate calculations and enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)a. Net income: ___b. ROA: ___c. ROE: ___
Denver Incorporated has anet incomeof $0.71 million.Income marginis a statistic that measures how profitable an enterprise is. The efficiency of a company's use of its assets is measured by profitability ratios. Sales margin measures how much of a profit you make on each sale.The formula for calculating acompany's profit marginis as follows:Profit Margin = net income / net salesGiven, Assume the profit margin is 5%.5% = net income / $14.2 millionNet income = $14.2 million x 0.05 =$0.71 millionThe term "return on assets" is commonly used in business. Return on assets is used as a metric for a company's profitability (ROA). Executives, analysts, and shareholders can gain insight into a company's asset utilization efficiency through calculations of itsReturn on Assets (ROA).Return on Assets =Therefore, Return on Assets(ROA) == $0.063 millionThe return on equityis a measure of a company's efficiency in allocating shareholder funds (ROE). Profitability is evaluated by looking at how much money has been returned to shareholders. Gaining a greater rate of return on equity improves a company's ability to generate gains from equity funding.Return on Equity === $11.3 millionTo know more aboutnet income:brainly.com/question/28390284#SPJ4The right way of asking the question is:Denver, Incorporated, has sales of $14.2 million, total assets of $11.3 million, and total debt of $4.9 million. Assume the profit margin is 5 percent.a. What is net income? (Do not round intermediate calculations and enter your answer in dollars, not in millions, e.g., 1,234,567.)b. What is ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)c. What is ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)a. Net income: ___ b. ROA: ___ c. ROE: ___...