Calculate the net income for stumble-on-inn last year

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Reference no: EM131814717

1. Last year, Stumble-on-Inn, Inc., reported an ROE of 20 percent. The firm’s debt ratio was 59 percent, sales were $35 million, and the capital intensity was 1.20 times.

Calculate the net income for Stumble-on-Inn last year. (Do not round intermediate calculations. Enter your answer in dollars not in millions.)

Net income $

2. Rick’s Travel Service has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales are $9.2 million, total debt is $2.9975 million, debt ratio is 55 percent, and ROE is 19.0 percent.

Using the above information, calculate Rick’s ROA. (Round your answer to 2 decimal places.)

ROA %

Reference no: EM131814717

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