Homework Answers
| STEP 1: FORMULA | |||
| Return on Assets = Net Income / Average Assets of Company | |||
| Return on Assets = ( Opening Assets + Closing Assets ) / 2 | |||
| Opening Assets = | $ 31,70,00,000 | ||
| Closing Assets | $ 35,10,00,000 | ||
| Total Assets = | $ 66,80,00,000 | ||
| Average Assets = Total Assets / 2 = | $ 33,40,00,000 | ||
| STEP 2: CALCULATION OF THE RATIO | |||
| Return on Assets for the year 20X7= | |||
| Net Income = | $ 1,20,00,000 | ||
| Divide By | "/" By | ||
| Avergae Assets | $ 33,40,00,000 | ||
| Return on Assets = | 3.59% | ||
| STEP 3: ANSWER | |||
| Answer = Return on Assets = | 3.59% | ||
| Return on Equity Ratio = Net Income / Average Shareholder's Equity | |||
| Average Stakeholder's Equity = | |||
| Stockholder's equity for 20X6 | $ 15,35,00,000 | ||
| Add:Stockholder's equity for 20X7 | $ 16,65,00,000 | ||
| Total | $ 32,00,00,000 | ||
| Divide by 2 | "/ " By 2 | ||
| Average Stakeholder's Equity = | $ 16,00,00,000 | ||
| STEP 2: CALCULATION OF THE RATIO | |||
| Return on Equity = Net Income / Average Shareholder's Equity | |||
| Return on Equity = | |||
| Net Income = | $ 1,20,00,000.00 | ||
| Divide By | "/" By | ||
| Average Stakeholder's Equity = | $ 16,00,00,000 | ||
| Return on Equity = | 7.50% | ||
| STEP 3: ANSWER | |||
| Return on Equity for the year 20X7= | 7.50% | ||
| Return on Assets are showing weakness but at the same time return on shareholder's equity | |||
| is showing strength | |||
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45. FINANCIAL RATIOS DuBois Furniture, Inc., reported these figures for 20x7 and 20x6: Income statement: 20x7...
Note: Can you put this answer on Microsoft Excel ! 45. FINANCIAL RATIOS DuBois Furniture, Inc.,...
Note: Can you put this answer on Microsoft Excel !
45. FINANCIAL RATIOS DuBois Furniture, Inc., reported these figures for 20x7 and 20x6: Income statement: 20x7 20x6 Net income 12,000,000 18,700,000 Balance sheet: Preferred stock, $1.30, no-par, 100,000 shares issued and outstanding . Common stockholders' equity . .. 2,500,000 2,500,000 Spreadsheet Assignments 81 Compute rate of return on total assets and rate of return on 20x7. Do these rates of return suggest strength or weakness? Give yo common stockholders' equity...
Question Help Winter Consulting Lid reported the figures shown below for 2020 and 2019 (Click the...
Question Help Winter Consulting Lid reported the figures shown below for 2020 and 2019 (Click the icon to view the partial financial reports.) Required Compute the rate of return on total assets (ROA) and rate of return on common shareholders' equity (ROE) for 2020 2 Do these rates of return suggest strength or weakness? Give your reasons. 1 Calculate the rate of return on total assets. (Round all interim calculations to the nearest whole number. Round your final answers to...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $4,800,000 $4,400,000 $4,000,000 Notes payable (8% interest) 2,250,000 2,250,000 2,250,000 Common stock 250,000 250,000 250,000 Preferred 4% stock, $100 par (no change during year) 500,000 500,000 500,000 Retained earnings 1,574,000 1,222,000 750,000 The 2017 net income was $372,000, and the 2016 net income was $492,000. No dividends on common stock were...
Waldy Consulting Ltd. reported the figures shown below for 2020 and 2019. (Click the icon to...
Waldy Consulting Ltd. reported the figures shown below for 2020 and 2019. (Click the icon to view the partial financial reports.) Required 1. Compute the rate of return on total assets (ROA) and rate of return on common shareholders' equity (ROE) for 2020. 2. Do these rates of return suggest strength or weakness? Give your reasons. Calculate the rate of return on total assets. (Round all interim calculations to the nearest whole number. Round your final answers to two decimal...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $162,000 $146,000 $130,000 Notes payable (8% Interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 4% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 60,560 39,780 30,000 The 2017 net income was $21,180, and the 2016 net income was $10,180. No dividends on common stock were...
Calculator Print Item Exercise 12-79 Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc....
Calculator Print Item Exercise 12-79 Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 $6,944,296 (4,953,556) $1,990,740 (1,202,042) $6,149,218 (4,355,675) $1,793,543 (1,080,843) Net sales Cost of goods sold Gross margin General and administrative expenses Special and nonrecurring items Operating income Interest expense Other income Gain on sale of investments Income before income taxes Provision for income taxes Net income $7,245,088 (5,286,253) $1,958,835 (1,259,896) 2,617 $701,556 (63,685)...
Return Ratios and Leverage The following selected data are taken from the financial statements of Cedar...
Return Ratios and Leverage The following selected data are taken from the financial statements of Cedar Industries: Sales revenue $663,000 Cost of goods sold 387,000 Gross profit $276,000 Selling and administrative expense 100,000 Operating income $176,000 Interest expense 50,000 Income before tax $126,000 Income tax expense (40%) 50,400 Net income $75,600 Accounts payable $45,000 Accrued liabilities 70,000 Income taxes payable 10,000 Interest payable 25,000 Short-term loans payable 150,000 Total current liabilities $300,000 Long-term bonds payable $500,000 Preferred stock, 10%, $100...
Show Me How Calculator Ratios ing selected data were taken from the financial statements of Vidahill...
Show Me How Calculator Ratios ing selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2076, and 2015: December 31 2017 2016 2015 $250,000 $225,000 $200,000 s payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 3% stock, $100 par 16,000 16,000 16,000 Ino change during year) ned earnings 101,415 67,145 48,000 The 2017 net income was $34,750, and the 2016 net income was $19,625. No dividends on common stock were...
Comparative financial statement data of Manfield, Inc. follow: Comparative financial statement data of Manfield, Inc. follow:...
Comparative financial statement data of Manfield, Inc.
follow:
Comparative financial statement data of Manfield, Inc. follow: 囲(Click the icon to view the income statement.) EEE (Click the icon to view the balance sheet.) 1 (Click the icon to view the additional financial information.) Read the requirements Requirement 1a. Compute the current ratios for 2018 and 2017. Begin by selecting the formula to compute the current ratio Current ratio = Manfield, Inc. Comparative Income Statement Years Ended December 31, 2018 and...
Note: Can you put this answer on Microsoft Excel !
45. FINANCIAL RATIOS DuBois Furniture, Inc., reported these figures for 20x7 and 20x6: Income statement: 20x7 20x6 Net income 12,000,000 18,700,000 Balance sheet: Preferred stock, $1.30, no-par, 100,000 shares issued and outstanding . Common stockholders' equity . .. 2,500,000 2,500,000 Spreadsheet Assignments 81 Compute rate of return on total assets and rate of return on 20x7. Do these rates of return suggest strength or weakness? Give yo common stockholders' equity...
Question Help Winter Consulting Lid reported the figures shown below for 2020 and 2019 (Click the icon to view the partial financial reports.) Required Compute the rate of return on total assets (ROA) and rate of return on common shareholders' equity (ROE) for 2020 2 Do these rates of return suggest strength or weakness? Give your reasons. 1 Calculate the rate of return on total assets. (Round all interim calculations to the nearest whole number. Round your final answers to...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $4,800,000 $4,400,000 $4,000,000 Notes payable (8% interest) 2,250,000 2,250,000 2,250,000 Common stock 250,000 250,000 250,000 Preferred 4% stock, $100 par (no change during year) 500,000 500,000 500,000 Retained earnings 1,574,000 1,222,000 750,000 The 2017 net income was $372,000, and the 2016 net income was $492,000. No dividends on common stock were...
Waldy Consulting Ltd. reported the figures shown below for 2020 and 2019. (Click the icon to view the partial financial reports.) Required 1. Compute the rate of return on total assets (ROA) and rate of return on common shareholders' equity (ROE) for 2020. 2. Do these rates of return suggest strength or weakness? Give your reasons. Calculate the rate of return on total assets. (Round all interim calculations to the nearest whole number. Round your final answers to two decimal...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $162,000 $146,000 $130,000 Notes payable (8% Interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 4% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 60,560 39,780 30,000 The 2017 net income was $21,180, and the 2016 net income was $10,180. No dividends on common stock were...
Calculator Print Item Exercise 12-79 Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 $6,944,296 (4,953,556) $1,990,740 (1,202,042) $6,149,218 (4,355,675) $1,793,543 (1,080,843) Net sales Cost of goods sold Gross margin General and administrative expenses Special and nonrecurring items Operating income Interest expense Other income Gain on sale of investments Income before income taxes Provision for income taxes Net income $7,245,088 (5,286,253) $1,958,835 (1,259,896) 2,617 $701,556 (63,685)...
Show Me How Calculator Ratios ing selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2076, and 2015: December 31 2017 2016 2015 $250,000 $225,000 $200,000 s payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 3% stock, $100 par 16,000 16,000 16,000 Ino change during year) ned earnings 101,415 67,145 48,000 The 2017 net income was $34,750, and the 2016 net income was $19,625. No dividends on common stock were...
Comparative financial statement data of Manfield, Inc.
follow:
Comparative financial statement data of Manfield, Inc. follow: 囲(Click the icon to view the income statement.) EEE (Click the icon to view the balance sheet.) 1 (Click the icon to view the additional financial information.) Read the requirements Requirement 1a. Compute the current ratios for 2018 and 2017. Begin by selecting the formula to compute the current ratio Current ratio = Manfield, Inc. Comparative Income Statement Years Ended December 31, 2018 and...
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