New Steel Products has total assets of $991,000,a total asset turnover rate of 1.1,a debt-equity ratio of 0.6,and a return on equity of 8.7 percent.What is the firm's net income?
A)$53,885.63
B)$58,303.33
C)$64,624.14
D)$70,548.09
E)$77,236.67

Question

Quizplus · Accepted Answer

Return on equity = 0.087 = [Net income/($991,000 × 1.1)] × 1.1 × (1 + 0.6); Net income = $53,885.63

New Steel Products Has Total Assets of $991,000,a Total Asset