Peter Gilgen & Co.'s (PG & Co.) recent balance sheet (fiscal year 2016) reported average equity of $112,036 and average total assets of $240,598. Assume that the company's statutory tax rate is 35%. PG & Co.'s recent income statement showed the following):
A. Calculate the income tax rate on earnings before income taxes.
B. How much is EWI?
C. Calculate ROE and ROA.

Question

Peter Gilgen & Co.'s (PG & Co.) recent balance sheet (fiscal year 2016) reported average equity of $112,036 and average total assets of $240,598. Assume that the company's statutory tax rate is 35%. PG & Co.'s recent income statement showed the following):
  A. Calculate the income tax rate on earnings before income taxes.
B. How much is EWI?
C. Calculate ROE and ROA.

Quizplus · Accepted Answer

The Answer of Peter Gilgen & Co.'s (PG & Co.) recent balance sheet (fiscal year 2016) reported average equity of $112,036 and average total assets of $240,598. Assume that the company's statutory tax rate is 35%. PG & Co.'s recent income statement showed the following):
  A. Calculate the income tax rate on earnings before income taxes.
B. How much is EWI?
C. Calculate ROE and ROA.