Answer
A |
Sales |
$4,880,000 |
B |
Net Income % on sales |
3% |
C = A x B |
Net Income |
$146,400 |
A |
Sales |
$4,880,000 |
B |
Asset Turnover ratio |
2.8 |
C = A/D |
Total Assets |
$1,742,857 |
D |
Current Liabilities |
$196,000 |
E |
Long Term Liabilities |
$359,000 |
F = C - D - E |
Total Stockholder's Equity |
$1,187,857 |
A |
Net Income |
$146,400 |
B |
Total Stockholder's Equity |
$1,187,857 |
C = A/B |
Return on Stockholder's Equity |
12.32% = Answer |
A |
Total Assets |
$1,742,857 |
B |
Asset Turnover ratio |
3.4 |
C = A x B |
New total Sales |
$5,925,714 |
D |
Net Income % on sale |
3% |
E = C x D |
Net Income |
$177,771 |
F [already calculated above, stays same] |
Total Stockholder's Equity |
$1,187,857 |
G = E/F |
New Return on Stockholder's Equity |
14.97% = Answer |
Jerry Rice and Grain Stores has $4,880,000 in yearly sales. The firm earns 3 percent on...
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