what is the equity multiplier return on equity net income 556238

Equity Multiplier and Return on Equity

Haselden Fried Chicken Company has a debt equity ratio of 1.10. Return on assets is 8.4 percent, and total equity is $440,000. What is the equity multiplier? Return on equity? Net income? Just Dew It Corporation reports the following balance sheet information for 2001 and 2002.

JUST DEW IT CORPORATION

Balance Sheets as of December 31, 2001 and 2002

2001

2002

2001

2002

Assets

Liabilities and Owners’ Equity

Current assets

Current liabilities

Cash

$ 9,201

$ 9,682

Accounts payable

$ 71,802

$ 56,382

Accounts receivable

28,426

29,481

Notes payable

36,108

50,116

Inventory

54,318

63,682

Total

$107,910

$106,498

Total

$ 91,945

$102,845

Long term debt

$ 50,000

$ 35,000

Fixed assets

Owners’ equity

Net plant and equipment

$296,418

$327,154

Common stock and

Total assets

$388,363

$429,999

paid in surplus

$ 75,000

$ 75,000

Retained earnings

155,453

213,501

Total

$230,543

$288,501

Total liabilities and owners’ equity

$388,363

$429,999

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