Ask Question
4 March, 23:16

Borland, Inc., has a profit margin of 5.6 percent on sales of $13.6 million. If the firm has debt of $6.4 million and total assets of $9.8 million, what is the firm's ROA?

+3
Answers (1)
  1. 5 March, 02:53
    0
    ROA = 7.77 percent

    Step-by-step explanation:

    Borland, Inc., has a profit margin of 5.6 percent on sales of $13.6 million

    Thus, profit = 5.6% of $13.6 million

    profit = 5.6 / 100 * $13.6 million = $0.7616 million

    Profit is same as net income

    Formula for ROA (return on asset) = net income / total asset

    total asset as given = $9.8 million

    Thus, ROA = $0.7616 / $9.8 = 0.0777

    ROA in percentage = 0.0777*100 = 7.77

    Thus, ROA is 7.77 percent.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Borland, Inc., has a profit margin of 5.6 percent on sales of $13.6 million. If the firm has debt of $6.4 million and total assets of $9.8 ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers