For the year ended December 31, 2019, Settles Inc. earned an ROI of 8.0%. Sales for the year were $15 million, and average asset turnover was 2. Average stockholders' equity was $2.6 million. Required: a. Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) b. Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.) a. Margin 4.0 % Net income 24 300,000 b. Return on equity 23.0 %

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
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Hello, just need help on net income and return on equity

For the year ended December 31, 2019, Settles Inc. earned an ROI of 8.0%. Sales for the year were $15 million, and average asset
turnover was 2. Average stockholders' equity was $2.6 million.
Required:
a. Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in
dollars, i.e., $5 million should be entered as 5,000,000.)
b. Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.)
a. Margin
4.0 %
Net income
%24
300,000
b.
Return on equity
23.0 %
Next >
2. of 4
Transcribed Image Text:For the year ended December 31, 2019, Settles Inc. earned an ROI of 8.0%. Sales for the year were $15 million, and average asset turnover was 2. Average stockholders' equity was $2.6 million. Required: a. Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) b. Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.) a. Margin 4.0 % Net income %24 300,000 b. Return on equity 23.0 % Next > 2. of 4
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