Ask Experts Questions for FREE Help !
Ask
    snajand's Avatar
    snajand Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 29, 2008, 03:01 PM
    How do I calculate Net Income?
    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's Avatar
    MLSNC Posts: 158, Reputation: 17
    Junior Member
    		  
    #2

    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Calculate Income Taxes on Income Statement [ 3 Answers ]

Income Statement Preparation I was provided the following information and would like to know how I can figure out the Income taxes (30% of income before taxes) Accounts Payable: 35,000 Accounts Receivable: 65,000 Advertising Expense: 15,000 Cash: 19,500 Supplies Expense: 46,000 Rent...

Live in NJ, Work in NY, how to calculate Income From New York [ 15 Answers ]

Hi, I live in NJ but worked in NY and New Jersey. How do I find the income actually taxed by New York? I am trying to do the New Jersey Tax return and want to know which income should I use from IT-203 New York Non Resident. Is it line 1, wages, salaries, or line 36, New York taxable income, or...

Calculate net income and retained earnings after adjustment [ 1 Answers ]

If the year-end financial staement the income staement shoed net income of $23,700, and the balance sheet showed ending reained earnings of $91,000. The firm determined that adjustments should be made that would increase revenues by 5,000 and increase expenses by $8,400. Calculate the amounts...

Asssitance in finding (calculate profit margin and net income) [ 1 Answers ]

OK, have an assignment and this might be easy, but we still haven't been taught on everything yet. Here is my question- company net loss (15000 Pounds) on sales of ( 160,000 Pounds), company's margin profit is____ % In $ sales were 400,000, net income in $ was $______ Please help me.. thank...

Someone Calculate my Returns from Below Income [ 1 Answers ]

Hi Tax Experts, I came to US on Sept 2006 from India. I am in H1 status, single. I started working from mid of sept onwards. My company is based in Delaware below are my W2 entries: Wages : 16836.98 Federal Tax : 2936.00 SSN Tax : 1043.89 Medicar Tax : 244.14 State Income Tax : 746.25

View more questions Search