Question

The Malia Corporation had sales in 2015 of ​$62 ​million, total assets of ​$50 ​million, and total liabilities of $ 21 million. The interest rate on the​ company's debt is 6.9 percent and its tax rate is 30 percent. The operating profit margin was 12.8 percent. What were the​ company's operating income and net​ income? What was the operating return on assets and return on​ equity? Assume that interest must be paid on all of the debt.

Answer 1

Operating Income $7.936.000

Net Income $4.540.900

ROA 16%

ROE 27%

Step-by-step explanation:

Income Statement 2015

Sales $62.000.000

Operating Income $7.936.000 12,8%

Interest Expenses 6,9% -$1.449.000

Net Income BEFORE Taxes $6.487.000

Tax RATE 30% -$1.946.100

Net Income $4.540.900