Net operating income and net income

Assignment Help Finance Basics
Reference no: EM132379741

In? 2016, the Allen Corporation had sales of $62 ?million, total assets of $47 ?million, and total liabilities of $16 million. The interest rate on the? company's debt is 5.6 ?percent, and its tax rate is 35 percent. The operating profit margin is 10 percent.

a. Compute the? firm's 2016 net operating income and net income.

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: EM132379741

Questions Cloud

What is its average collection? period : If? Brenmar's accounts receivable equal $562,900?, what is its average collection? period?
What is the? firm debt? ratio : Dearborn Supplies has total sales of $204 ?million, assets of $93 ?million, a return on equity of 29 ?percent, and a net profit margin of 7.8 percent.
What is the maximum level of accounts receivable : What is the maximum level of accounts receivable that ALei can carry and have a 35?-day average collection? period?
BM133 Introduction to Small Business Management Question : BM133 Introduction to Small Business Management assignment help and solutions, Computer Systems Institute - Does small business play a significant role.
Net operating income and net income : a. Compute the? firm's 2016 net operating income and net income.
What will the aftertax salvage value be : The tax rate is 25 percent and the discount rate is 10 percent. If the equipment is sold today for $215,000, what will the aftertax salvage value be?
Research on Chevron use of seismic imaging technology : Do some Internet research on Chevron's use of seismic imaging technology. Explain how it works and how it has helped Chevron discover new oil and gas reservoirs
What is the financial break-even point : Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?
Feasibility analysis of a project : The present value of all other estimated cash inflows and cash outflows which are related to this project is $20,000. Should the investment be undertaken?

Reviews

Write a Review

Finance Basics Questions & Answers

  A private energy trading company is considering the

a private energy trading company is considering the acquisition of a heavy crude container. this is to handle a variety

  Library resources company employs activity-based costing

library resources company uses activity-based costing. the company produces soft and hard-cover books. the estimated

  What is the company wacc

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6.

  What is the true initial cost figure the company should use

What is the true initial cost figure the company should use when evaluating its project?

  What is the expected value of going to court

Create a decision tree to represent this situation. What is the expected value of going to court? What should Samuel do?

  Compute the wacc

Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 30%, compute the WACC?

  Vacate the rental unit atthe end of the thirty days

Paula rented an apartment to Dave for $500 per month. Paula and Dave signed a one-year lease,to be effective beginning January 1st. After three months, Dave decided that he did not like theapartment. He gave Paula a 30-day written notice, stating tha..

  Time value of money-retirement fund

Kay Mart owns an annuity that will begin making semiannual payments of $7500 in perpetuity to her or her heirs. The first payment will take place 3 years and 6 months from today. She is considering selling the annuity to an investor whose required..

  How do you factor using complete the square

How do you factor using complete the square, is there like a certain acronym i could use?

  Bond repayments of principal is normally

Explain the logic why BOND repayments of principal is normally limited to 30 or 40 years in typical bonds.

  Construct floribama''s cash budget for the next three months

The company currently has no cash, but its target cash balance is $6,000. Construct Floribama's cash budget for the next three months.

  Do you believe that it is appropriate that we have a

do you believe that it is appropriate that we have a single global set of accounting standards as well as one

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd