Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 17

Calculate margin, net income, and ROE For the year ended December 31, 2010, Ebanks, Inc., earned an ROI of 12%. Sales for the year were $96 million, and average asset turnover was 2.4. Average owners’ equity was $32 million.

Required:

a.Calculate Ebanks, Inc.’s margin and net income.

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b. Calculate Ebanks, Inc.’s return on equity.