Y3K, Inc. has sales of $2,200, total assets of $1,000, and a debt−equity ratio of .45. If its return on equity is 16 percent, its net income is $?

Having a hard time figuring out how to get the Net Income from this.

You are given--in so many words--that

Debt + Equity = 1,000

You're also given that the Debt dollar amount is 45% of the Equity dollar amount. From that you can determine the Equity amount, in dollars.

Then finally, they kindly mention that Net Income is 16% of Equity.

While you're having all this fun, don't spend too much time trying to figure out how the Sales info figures into the answer--in this case, it doesn't.

Cheers!