Rick's Travel Service has asked you to help piece you the following information: sales are $7.4 million, total debt is $2.00 million, debt ratio is 35 percent, and ROE is 17.1 percent. Using the above information, calculate Rick's ROA. Note: Round your answer to 2 decimal places. ROA %

Rick's Travel Service has asked you to help piece you the following information: sales are $7.4 million, total debt is $2.00 million, debt ratio is 35 percent, and ROE is 17.1 percent. Using the above information, calculate Rick's ROA. Note: Round your answer to 2 decimal places. ROA %

Name: Rick's Travel Service has asked you to help piece together financial
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Description: Rick's Travel Service has asked you to help piece together financial information on the firm for the most current year. Managers giveyou the following information: sales are $7.4 million, total debt is $2.00 million, debt ratio is 35 percent, and RO

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8EB: Using the following select financial statement information from Mover Supply Depot, compute the...

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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 $7.5 million, total debt is $3.00 million, debt ratio is 55 percent, and ROE is 17.2 percent. Using the above information, calculate Rick’s ROA. (Round your answer to 2 decimal places.) ROA _________ %
Using Table 6–13, create a pro forma balance sheet using the percentage of sales method. If net income next year is $50,000, answer the following: How much did the owners take out of the business? What is the profit margin for next year?
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