How do I calculate Net Income? [Archive]

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snajand

Aug 29, 2008, 03:01 PM

How do I calculate net income given

Sales $1.9 million
Assets $1.46 million
Debt to Equity Ratio is 1
Return on Equity is .18

I have tried rearranging to formulas for ROE but can't get it. Would appreciate your help

MLSNC

Sep 11, 2008, 06:34 PM

Since debt to equity is 1, I believe that debt is = to equity. If that is true take 1/2 of the assets to debt and 1/2 to equity. This give you equity of .73 million. I don't know if I am on the right track, but if I am you should be able to solve net income from here based on the return on equity.