Final answer:
To calculate the net income and net sales, we need to use the formulas for profit margin and return on assets (ROA). Given the profit margin of 11.59% and ROA of 11.67%, we can solve for net income and net sales. The debt-to-equity ratio is calculated by dividing total debt by total equity, giving a ratio of 0.54.
Step-by-step explanation:
To calculate the net income and net sales, we need to use the formulas for profit margin and return on assets (ROA).
Profit Margin = Net Income / Net Sales
ROA = Net Income / Total Assets
Given that the profit margin is 11.59% and ROA is 11.67%, we can set up the following equations:
Net Income / Net Sales = 11.59% => Net Income = 0.1159 * Net Sales
Net Income / Total Assets = 11.67% => Net Income = 0.1167 * Total Assets
Substituting the second equation into the first equation, we get:
0.1167 * Total Assets = 0.1159 * Net Sales
To solve for Net Income, we can multiply both sides of the equation by Total Assets:
0.1167 * Total Assets * Total Assets = 0.1159 * Net Sales * Total Assets
0.1167 * Total Assets^2 = 0.1159 * Net Sales * Total Assets
Simplifying, we find:
Total Assets = Net Sales
Therefore, we can conclude that Net Income = Net Sales * 0.1167.
Using the given Total Assets of $87,631,181, we can calculate:
Net Income = $87,631,181 * 0.1167 = $10,212,229
Now, let's calculate the debt-to-equity ratio. This can be done using the formula:
Debt-to-Equity Ratio = Total Debt / Total Equity
Given that the Total Debt is $80 and Total Equity is $30, we can plug these values into the formula:
Debt-to-Equity Ratio = $80 / $30 = 0.54
Therefore, the correct answer is option a) Net income: $10,212,229; Net sales: $87,631,181; Debt-to-equity ratio: 0.54.