Question: Database Systems is considering expansion into a new product line. Assets to support expansion will cost $630,000. It is estimated that Database can generate $1,240,000

Database Systems is considering expansion into a new product line. Assets to support expansion will cost $630,000. It is estimated that Database can generate $1,240,000 in annual sales, with an 15 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.)

Net income $
Return on assets %

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!