Trying to figure out what the gross profit or cost production is for this problem... unsure on how to solve it? :confused:
Ebersoll Mining:
Has $6 million in sales
ROE is 12%
Total assets turnover is 3.2x
The company is 50% equity financed
What is the net income?
Net Income = Sales - Gross profit; Gross Profit - Cost of Production = Net Income
NI = 6.0 -