Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 2

Calculate margin, net income, and ROE For the year ended December 31, 2016, Settles, Inc., earned an ROI of 14.7%. Sales for the year were $140 million, and average asset turnover was 3.5. Average stockholders' equity was $30 million.
Required:
a. Calculate Settles, Inc.'s margin and net income.
b. Calculate Settles, Inc.'s return on equity.