Question

Omni Technology Holding Company has the following three affiliates: Software Personal Computers Foreign Operations Sales $...

Omni Technology Holding Company has the following three affiliates:

Software Personal
Computers
Foreign
Operations
Sales $ 40,990,000 $ 60,000,000 $ 100,970,000
Net income (after taxes) 2,064,000 2,690,000 8,970,000
Assets 5,310,000 25,780,000 60,340,000
Stockholders' equity 4,940,000 10,190,000 50,850,000

a-1. Compute the return on sales. (Input your answers as a percent rounded to 2 decimal places.)

Return on Sales

Software     % ?

Personal Computers % ?

Foreign Operations % ?

b-1. Compute the return on assets. (Input your answers as a percent rounded to 2 decimal places.)

Return on Sales

Software     % ?

Personal Computers % ?

Foreign Operations % ?

c-1. Compute the total asset turnover. (Round your answers to 2 decimal places.)

Total Asset Turnover

Software     % ?

Personal Computers % ?

Foreign Operations % ?

d-1. Compute the return on stockholders' equity. (Input your answers as a percent rounded to 2 decimal places.)

Return on Stockholders Equity

Software     % ?

Personal Computers % ?

Foreign Operations % ?

e-1. Compute the debt ratio. (Input your answers as a percent rounded to 2 decimal places.)

Debt Ratio

Software     % ?

Personal Computers % ?

Foreign Operations % ?

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Answer #1
Ans.a Return on sales = Net income / Sales
Software 2064000 / 40990000 5.04%
Personal computers 2690000 / 60000000 4.48%
Foreign operations 8970000 / 100970000 8.88%
Ans.b Return on assets = Net income / Total assets
Software 2064000 / 5310000 38.87%
Personal computers 2690000 / 25780000 10.43%
Foreign operations 8970000 / 60340000 14.87%
Ans.c Total assets turnover = Sales / Total assets
Software 40990000 / 5310000 7.72 times
Personal computers 60000000 / 25780000 2.33 times
Foreign operations 100970000 / 60340000 1.67 times
Ans.d Return on stockholders' equity = Net income / Stockholders' equity
Software 2064000 / 4940000 41.78%
Personal computers 2690000 / 10190000 26.40%
Foreign operations 8970000 / 50850000 17.64%
Ans.e Debt ratio = Total debt / Total assets
Software 370000 / 5310000 6.97%
Personal computers 15590000 / 25780000 60.47%
Foreign operations 9490000 / 60340000 15.73%
*Total debt =   Total assets - Stockholder's equity
Software 5310000 - 4940000 370000
Personal computers 25780000 - 10190000 15590000
Foreign operations 60340000 - 50850000 9490000
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