Business, 21.07.2020 20:01 Babygirll41

DTO, Inc., has sales of $21 million, total assets of $19.1 million, and total debt of $6.8 million. Assume the profit margin is 8 percent. a. What is the company's net income?
b. What is the company's ROA? (Do not round intermediate calculations.
c. What is the company's ROE? (Do not round intermediate calculations

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Answer from: samueladetoro54

The answer is given below

Explanation:

a. What is the company's net income?

The net income net income is the Income of an entity minus the expenses, cost of goods sold, interest, depreciation and amortization, and taxes for the accounting period. In this case, the net income will be:

= 21,000,000 × 8%

= 21,000,000 × 0.08

= 1,680,000

b. What is the company's ROA?

The return on asset is calculated by dividing the net income by the total assets. This will be:

= 1,680,000/19,100,000

= 0.088

= 8.8%

c. What is the company's ROE?

The return on equity will be:

Total equity will be the total assets minus total liabilities. This will be:

= 19,100,000 - 6,800,000

=12,300,000

Return on equity will now be:

= 1,680,000/12,230,000

= 13.74%

Answer from: Quest

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

Answer from: Quest

What are the options?

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DTO, Inc., has sales of $21 million, total assets of $19.1 million, and total debt of $6.8 million....

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