Easter Egg and Poultry Company has $1,040,000 in assets and $643,000 of debt. It reports net...
Easter Egg and Poultry Company has $1,040,000 in assets and $643,000 of debt. It reports net income of $193,000.
a. What is the firm's return on assets?
b. what is its return on stockholders' equity?
c. if the firm has an asset turnover ratio of 4.5 times, what is the profit margin (return on sales)?
Homework Answers
a. Return on Assets = Net Income / Total Assets
= $ 193,000 / $ 1,040,000
= 0.185576923
= 18.56%
b. Stockholder's equity = Total assets - debt
= $ 1,040,000 - $ 643,000
= $ 397,000
return on stockholders' equity = Net Income / Stockholder's equity
= $ 193,000 / $ 397,000
= 48.61%
c. The asset turnover ratio = Net Sales / Total Assets
4.5 = Net Sales / $ 1,040,000
Net Sales = $ 1,040,000* 4.5
= $ 4,680,000
Profit Margin = Net Income / Net Sales *100
= $ 193,000 / $ 4,680,000 *100
= 4.12%
Add Answer to:
Easter Egg and Poultry Company has $1,040,000 in assets and
$643,000 of debt. It reports net...
Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt. It reports net...
Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt. It reports net income of $161,000. If the firm has an asset turnover ratio of 1.8 times, what is the profit margin (return on sales)?
4. 2.77 points Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt....
4. 2.77 points Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt. It reports net income of $161,000. a. What is the firm's return on assets? (Enter your answer as a percent rounded to 2 decimal places.) Return on asset b. What is its return on stockholders' equity? (Enter your answer as a percent rounded to 2 decimal places.) Return on equity % c. If the firm has an asset turnover ratio of 1.8 times, what...
Easter Egg and Poultry Company has $1,190,000 in assets and $647,000 of debt. It reports net...
Easter Egg and Poultry Company has $1,190,000 in assets and $647,000 of debt. It reports net income of $185,000. Having a hard time finding part b of the question below. What is its return on stockholders’ equity?
Tube Company has $1,200,000 in assets and $500,000 of debt. It reports net income of $150,000....
Tube Company has $1,200,000 in assets and $500,000 of debt. It reports net income of $150,000. a. What is the return on the assets? b. What is the return on stockholders' equity? c. If the firm has an asset turnover ratio of 3 times, what is the profit margin (return on sales)?
. Acme Corporation has $1,200,000 in assets and $700,000 of debt. It reports net income of...
. Acme Corporation has $1,200,000 in assets and $700,000 of debt. It reports net income of $200,000. A )What is the return on assets? B) What is the return on stockholder’s equity? C) If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?
Bohemian Manufacturing Company has no debt in its capital structure and has $150 million in assets....
Bohemian Manufacturing Company has no debt in its capital structure and has $150 million in assets. Its sales revenues last year were $60 million with a net income of $5 million. The company distributed $1.85 mlion as dividends to its shareholders last year. What is the firm's self-supporting growth rate? 0 1.25% 0 4.78% o 1.51% 2.14% Which of the following are assumptions of the self-supporting growth model? Check all that apply The firm's total asset turnover ratio remains constant....
Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets...
Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets of $124,000,000 and stockholders' equity of $50,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. (Round answers to 2 decimal places, e.g. 12.25 or 12.25%.) Profit margin Total assets turnover times ROA ROE
1.What is the return on assets (ROA) for a firm that has a debt ratio of...
1.What is the return on assets (ROA) for a firm that has a debt ratio of 0.65, a net profit margin of 6.5%, sales of $740,000, and a total asset turnover of 4? 2. Thompson Corp has a NPM of 11.5%. They reported earnings after tax of $632,500. If they had net fixed assets of $1,500,000 and current assets of $750,000, what are their total asset turnover ratios?
the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net...
the DuPont formula relates return on equit
The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
1. Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000.The company has total...
1. Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000.The company has total assets of $116,000,000 and stockholders’ equity of $40,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. Profit margin: Total assets turnover: ROA: ROE: 2.Crane Sports Innovations has disclosed the following information: EBIT = $22,680,000 Net income = $12,600,000 Net sales = $81,000,000 Total debt = $34,000,000 Total assets = $84,000,000 Compute the following ratios...
4. 2.77 points Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt. It reports net income of $161,000. a. What is the firm's return on assets? (Enter your answer as a percent rounded to 2 decimal places.) Return on asset b. What is its return on stockholders' equity? (Enter your answer as a percent rounded to 2 decimal places.) Return on equity % c. If the firm has an asset turnover ratio of 1.8 times, what...
Tube Company has $1,200,000 in assets and $500,000 of debt. It reports net income of $150,000. a. What is the return on the assets? b. What is the return on stockholders' equity? c. If the firm has an asset turnover ratio of 3 times, what is the profit margin (return on sales)?
Bohemian Manufacturing Company has no debt in its capital structure and has $150 million in assets. Its sales revenues last year were $60 million with a net income of $5 million. The company distributed $1.85 mlion as dividends to its shareholders last year. What is the firm's self-supporting growth rate? 0 1.25% 0 4.78% o 1.51% 2.14% Which of the following are assumptions of the self-supporting growth model? Check all that apply The firm's total asset turnover ratio remains constant....
Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets of $124,000,000 and stockholders' equity of $50,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. (Round answers to 2 decimal places, e.g. 12.25 or 12.25%.) Profit margin Total assets turnover times ROA ROE
the DuPont formula relates return on equit
The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
Most questions answered within 3 hours.
-
Why is a personal interview the most important step in the sales
selection process? What are...
asked 5 minutes ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 5 minutes ago -
If we observe in a protein solution that DNA is causing a
mixture 260/280 ratio ~0.9,...
asked 15 minutes ago -
Explain the steps involved in making cDNA from mRNA, and how you
would create a cDNA...
asked 15 minutes ago -
A beta (β) particle is described by which of the following?
Select the correct answer below:...
asked 18 minutes ago -
A new machine costs $150,000, lasts 10 years, has an annual
O&M cost of $50,000, and...
asked 21 minutes ago -
A newspaper in a large Midwestern city reported that the
National Association of Realtors said that...
asked 23 minutes ago -
1. Develop a use case diagram for the bank case study described
in Chapter 1. 2....
asked 33 minutes ago -
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 40 minutes ago -
The average amount of money spent for lunch per person in the
college cafeteria is $7.09...
asked 42 minutes ago -
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 1 hour ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 1 hour ago