A firm has a return on equity of 25 percent. The total asset turnover is 2.4 and the profit margin is 8 percent. The total equity is $4,100. What is the amount of the net income? Solution a.ROE (Dupont) = Net income/Sales x Sales/Total assets x Total assets/Total equity. 0.25= 0.08*2.4*x/4100 Total assets = $5340\' 1. Return on Equity = Net income / Total equity 0.25 = Net income / $4100 Net income = $4100*0.25 =$1025 .