Net operating income and net income

Assignment Help Financial Management

Reference no: EM132014596

In 2016, the Allen Corporation had sales of $69 million, total assets of $43 million, and total liabilities of $17 million. The interest rate on the company's debt is 5.7 percent, and its tax rate is 35 percent. The operating profit margin is11 percent.

a. Compute the firm's 2016 net operating income and net income. (Round to two decimal places.)

b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)

Reference no: EM132014596

Questions Cloud

Corporate enterprise would be risky decision : Leaving the business and going back to a corporate enterprise would be a risky decision now as the expenses and the liabilities are more.

Potential customer who needs insurance for used car : Visit the Progressive Web site and assume you are a potential customer who needs insurance for a used car you plan to buy.

Disadvantages of both forward contracts and options : What are the advantages and disadvantages of both forward contracts and options.

Calculate the company cash outlays : Calculate the company's cash outlays, by completing the following for each of the four quarters.

Net operating income and net income : Compute the firm's 2016 net operating income and net income.

Firm use npv for analysis of proposed projects : Why would a firm use NPV for analysis of proposed projects rather than IRR?

Calculate cash collections in each of the four quarters : Calculate the cash collections in each of the four quarters by completing the following for each quarter.

What is its new market value : Suppose interest rates rise and pull the preferred stock's yield up to 11%. What is its new market value?

How far he has fallen behind in his retirement planning : Brian is sad when he realizes how far he has fallen behind in his retirement planning.

User Account

All Pages