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DB's total assets are $440,000,
The total asset turnover ratio is the efficiency ratio which is used to measure how much sales is generated by using the firm's total assets.
Debt ratio is the percentage of total debts divided by total assets which measures the percentage of liabilities that a firm has in terms of total assets. A higher ratio indicates that the firm is at risk.
Return on assets is used to measure how profitable a firm is related to the firm's total assets.
Return on equity is used to measure the financial performance that owners of the common stock of a company receive on their shareholdings.
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Chapter 2 Solutions
CFIN (with MindTap Finance, 1 term (6 months) Printed Access Card) (MindTap Course List)
- The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?arrow_forwardThe lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?arrow_forwardLamar , Inc. has sales of $8500, total assets of $2500, and a debt to equity ratio of 0.8, if its return on equity is 0.12, what is the net income?arrow_forward
- Assume you are given the following relationships for the Haslam Corporation:Sales/total assets 1.2Return on assets (ROA) 4%Return on equity (ROE) 7%Calculate Haslam’s profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.arrow_forwardY3K, Incorporated, has sales of $6,389, total assets of $3,005, and a debt-equity ratio of 1.60. If its return on equity is 10 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net incomearrow_forwardDTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?arrow_forward
- SDJ, Incorporated, has net working capital of $2,930, current liabilities of $4,070, and inventory of $3,770. a. What is the current ratio? b. What is the quick ratio?arrow_forwardThe Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?arrow_forwardLas year Justine Corp. had sales of P315,000 and a net income of P17,382, and its year-end assets were P210,000. Justine's total debt to total assets ratio was 42.5%. Based on the Du Pont equation, what was Justine's return on equity (ROE)?arrow_forward
- A firm has current liabilities of $500. Account receivables are $300 and inventory is $400. All other current assets equal $800. Long term assets are $5000, long term liabilities are $2500, sales is $8000, EBIT is $2000, interest expenses are $600 and net income is $100. Compute the following ratios: Current ratio, Debt ratio, TIE, ROA, and DSOarrow_forwardY3K, Inc., has sales of $6,329, total assets of $2,945, and a debt-equity ratio of 1.40. If its return on equity is 14 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net incomearrow_forward1. The Wilson Corporation has the following relationships:Sales/Total assets 2.0Return on assets (ROA) 4.0%Return on equity (ROE) 6.0%What is Wilson’s profit margin and debt ratio?arrow_forward
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
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