Taylor,Inc.has sales of $11,898,total assets of $9,315,and a debt-equity ratio of 0.55.If its return on equity is 14 percent,what is its net income?
A)$841.35
B)$887.16
C)$904.10
D)$911.16
E)$927.46

Name: Taylor,Inc.has sales of $11,898,total assets of $9,315,and a debt-equity ratio of 0.55.If its return on equity is 14 percent,what is its net income? A)$841.35 B)$887.16 C)$904.10 D)$911.16 E)$927.46
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Quizplus · Accepted Answer

Return on equity = 0.14 = (Net income/$9,315) × (1 + 0.55); Net income = $841.35