A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 14.9 percent. Sales were $1,750,000, the total debt ratio was .33, and total debt was $651,000. What is the return on assets (ROA)

9.98%

Explanation:

The total debt was $651,000

And, the total debt ratio is 0.33

So by considering the above information, we can find out the total assets value which is

= $651,000 ÷ 0.33

= $1,972,727.27

Now according to the accounting equation

The total assets = Total liabilities + owners equity

$1,972,727.27 = $651,000 + owners equity

So, owners equity = $1,321,727.27

And, the return on equity is

Return on equity = (Net income) ÷ (total equity)

14.9% = Net income ÷ $1,321,727.27

Hence, net income = $196,937

And, the return on assets equal to

= (Net income) ÷ (Total assets)

= $1,321,727.27 ÷ $1,972,727.27

= 9.98%

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: