Question

Corporation A has total liabilities of $9,000, and total assets of $13,000. It has sales of...

Corporation A has total liabilities of $9,000, and total assets of $13,000. It has sales of $5,000 and a profit margin of 11%,

18) What is ROA?

a.    4.23%                             

b.   .423%                                                       

c.   38.46%                             

d. .3846%

e. .6923%

19) What is net income?

A. $100,000

B.   $550

C.   $4,000

D.   $4,450

E.   NONE OF THE ABOVE

Homework Answers

Answer #1

Profit = Profit Margin * Sales

         =11% * 5000

         = $ 550

18) ROA =Profit / Total Assets

        = 550 / 13000

       = 4.23% Answer

Answer A is correct.

19) Net Income = Profit

                       = $ 550 Answer

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