In 2021, Jake's Jamming Music, Inc., announced an ROA of 8.65 percent, ROE of 15.40 percent, and profit margin of 15.1 percent. The firm had total assets of $10.4 million at year-end 2021.Calculate the 2021 value of net income available to common stockholders for Jake’s Jamming Music, Inc. (Enter your answer in dollars. Round your answer to the nearest whole dollar.)Net Income = _________Calculate the 2021 common stockholders’ equity for Jake’s Jamming Music, Inc. (Enter your answer in dollars not in millions and round to the nearest whole dollar.)Common Stockholders' Equity = _______Calculate the 2021 net sales for Jake’s Jamming Music, Inc. (Enter your answer in dollars not in millions and round to the nearest whole dollar.)Net Sales = __________

Question
Asked Sep 5, 2019

In 2021, Jake's Jamming Music, Inc., announced an ROA of 8.65 percent, ROE of 15.40 percent, and profit margin of 15.1 percent. The firm had total assets of $10.4 million at year-end 2021.

  1. Calculate the 2021 value of net income available to common stockholders for Jake’s Jamming Music, Inc. (Enter your answer in dollars. Round your answer to the nearest whole dollar.)

    • Net Income = _________
  2. Calculate the 2021 common stockholders’ equity for Jake’s Jamming Music, Inc. (Enter your answer in dollars not in millions and round to the nearest whole dollar.)

    • Common Stockholders' Equity = _______
  3. Calculate the 2021 net sales for Jake’s Jamming Music, Inc. (Enter your answer in dollars not in millions and round to the nearest whole dollar.)

    • Net Sales = __________
check_circleExpert Solution
Step 1

ROA = Net income / Total assets = 8.65%

ROE = Net income / Total Equity = 15.40%

Profit margin = Net income / Sales = 15.1%

Total assets = $ 10.4 million

Step 2

Part (1)

Based on the formula for ROA and ROE explained in the earlier step, we can quickly make out that,

Net income = ROA x Total assets = 8.65% x $ 10.4 million = $ 899,600

Step 3

Part (2)

common stockholders’ equity = Net inco...

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