Question: Database Systems is considering expansion into a new product line. Assets to support expansion will cost $580,000. It is estimated that Database can generate $1,640,000

Database Systems is considering expansion into a new product line. Assets

Database Systems is considering expansion into a new product line. Assets to support expansion will cost $580,000. It is estimated that Database can generate $1,640,000 in annual sales, with an 10 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Database systems is considering expansion into a new product line. Assets to support expansion will cost $720000. it estimated that Database Systems can generate $1360000 in annual sales, with an 13...

Database Systems is considering expansion into a new product line. Assets to support expansion will cost $ 5 0 0 , 0 0 0 it is estimated that Database can generate $ 1 , 2 0 0 , 0 0 0 in annual sales...

*Homework Help - Q&A from Onl x @ CONNECT Homework 2 - FINC 3: X 5 Question 1 - CONNECT Homewo X + X > C A...

Low Carb Diet Supplement, Inc., has two divisions. Division A has a profit of $306,000 on sales of $2,410,000. Division B is able to make only $28,700 on sales of $354,000. a. Compute the profit...

complete the problems using excel formula P.1: Profitability ratios (L02) Low Carb Diet Supplement Inc, has two divisions. Division A has a profit of $156,000 on sales of $2,010,000, Division B is...

please answer number two and number four. thank you. 78 Part 2 Fisancial Analysis and Planning Fixed charges Lease payments Interest S40.000 +$30,000-S70.000 $280,000 Fixed charge coverage70,000...

Low Carb Diet supplement Inc. has two divisions. Division A has a profit of exist156,000 on sales of exist2, 010,000. Division B is only able to make exist28, 800 on sales of exist329,000. Based on...

1. Use the following information for the problems (assume the tax rate is 34 percent): 2017 2018 Sales $9,402 $10,091 Depreciation 1,3 50 1,351 Cost of goods sold 3,235 3,672 Selling, general, and...

1. Profitability ratios (L03-2 @) Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $156,000 on sales of $2,010,000. Division B is able to make only $28,800 on sales of...

2. value: 2.77 points Database Systems is considering expansion into a new product line. Assets to support expansion will cost $580,000. It is estimated that Database Systems can generate $1,640,000...

Explain how the law protecting the privacy of e-mail differs, depending on whether the e-mail is sent from home or from work.

Which of the following are Actions and which are States of Nature? a) Whether to invest in solar energy companies. b) Whether your chief competitor decides to launch a new advertising campaign. c)...

We survey 4 0 0 executives in ten countries in Central and Eastern Europe ( CEE ) and report the results of their companies' capital budgeting practices. We find that capital budgeting practices in...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...