1. Last year, Stumble-on-Inn, Inc., reported an ROE of 20 percent. The firm’s debt ratio was 59 percent, sales were $35 million, and the capital intensity was 1.20 times.
Calculate the net income for Stumble-on-Inn last year. (Do not round intermediate calculations. Enter your answer in dollars not in millions.)
Net income $
2. 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 $9.2 million, total debt is $2.9975 million, debt ratio is 55 percent, and ROE is 19.0 percent.
Using the above information, calculate Rick’s ROA. (Round your answer to 2 decimal places.)
ROA %