World Exports has total assets of $938,280, a total asset turnover rate of 1.18, a debt-equity ratio of .47, and a return on equity of 18.7 percent.What is the firm's net income?
A)$119,359.43
B)$88,303.33
C)$104,624.14
D)$121,548.09
E)$92,236.67

Question

Quizplus · Accepted Answer

Net income = Total assets * Total asset turnover rate * Return on equity * (1 - Debt-equity ratio)= $938,280 * 1.18 * 18.7% * (1 - 0.47)= $119,359.43

World Exports Has Total Assets of $938,280, a Total Asset