For the year ended June 30, 2011, Northern Clothing Company has total

QUESTION

For the year ended June 30, 2011, Northern Clothing Company has total assets of $87,631,181, ROA of 11.67 percent, ROE of 21.19 percent, and a profit margin of 11.59 percent. What are the companys net income and net sales? Calculate the firms debt-to-equity ratio.
Return on Assets= Net Income/Total Assets Net Income= 11.67% of 87,631,181= $ 10,226,559 Return on Equity= Net Income/Total Equity 21.19% of Total Equity= 10,226,559 Total Equity= 10,226,559/21.19% Total Equity= 18,569,047 Total Debt= Total Assets- Total Equity Total Debt=¦

047 Total Debt= 69,062,134 Debt to Equity Ratio= Debt/Equity =69,062,134/18,569,047= 3.72 times Profit Margin= Net income/Sales 11.59%= 10,226,559/Sales Sales= 10,226,559/11.59% Sales= 88,236,057

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