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Sagot :
The firm's net income is $114,045,330.
Total Asset Turnover = Sales / Assets
or, 1.39 = Sales / $820,470
Sales = $820,470 × 1.39 = $1,140,453.3
Now,
Equity Multiplier
= Assets / Equity
= (Debt + Equity) / Equity
= (2.8 + 1) / 1
= 3.8
(Debt equity ratio has been used here)
As per Dupont Analysis,
ROE = Profit margin x Asset Turnover x Equity Multiplier
or, 0.34% = Profit Margin x 1.39 x 3.8
Profit Margin = 5.282%
Profit Margin = Net Income / Sales x 100
5.282% = Net Income / $1,140,453.3 x 100
Thus, Net Income = $114,045,330
Net income is an amount which an individual or business makes after deducting costs, taxes, and allowances. Thus, net income is what the business has left over after all its expenses.
To learn more about Net income here:
https://brainly.com/question/1347024
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