XYZ has total sales of 185 assets of 98 return on equity of

XYZ has total sales of $185, assets of $98, return on equity of 38%, and net profit margin of 6%. What is the amount of equity? Enter you answer rounded off to two decimal points. Do not enter $ in the answer box.

Solution

Return on equity = Net Profit/Equity

Equity = Net Profit/Return on equity

Equity = (6%*185)/38%

Equity = $ 29.21

Answer

Amount of equity = $ 29.21