Answer:
The net income is $1288
Explanation:
Given the return on equity for the firm = 23 %
The total asset turnover for the firm = 2.2
Given profit margin = 6 %
The total equity = $5600
Since we have given all the above values. Now we have to calculate the net income. Here, the net income can be calculated by multiplying the return on equity with total equity.
Return on equity = Net income / Total equity
23% = Net income / $5,600
Net income = $5,600 * 23%
Net income = $1,288
