A company has sales of $2.5m, a gross margin percent of 40% and a net income...
A company has sales of $2.5m, a gross margin percent of 40% and a net income of $500,000. The balance sheet shows total assets of $1.1m; total liabilities of $600,000; retained earnings of $350,000 and notes payable of $150,000.
Please calculate the following:
a. Return on Equity:
b. Profit margin:
c. Return on Assets:
d. Cost of goods sold:
Homework Answers
a.
ROE = 500,000/350,000 = 142.86%
b.
Profit Margin = 500,000/2,500,000 =20.%
c.
ROA = 500,000/(600,000 + 350,000 + 150,000) = 45.45%
d.
COGS = 0.60(2,500,000) = $1,500,000
Add Answer to:
A company has sales of $2.5m, a gross margin percent of 40% and
a net income...
Income Statement Sales revenue $50 Cost of goods sold 30 Gross profit (gross margin) 20 Selling...
Income Statement Sales revenue $50 Cost of goods sold 30 Gross profit (gross margin) 20 Selling and administrative expenses 10 Income before taxes A Income tax expense 4 Net Income $6 Earnings per share E Balance Sheet Cash $2 Liabilities: Inventory 5 Accounts payable $1 Current assets B Equipment, at cost 10 Shareholders’ Equity: Less: accumulated depreciation C Common stock, $1 par value per share 10 Equipment, net of depreciation 6 D Total assets $13 Total liabilities and s/equity $13...
3 3. Complete the balance sheet and sales information in the table that follows J. White...
3 3. Complete the balance sheet and sales information in the table that follows J. White Industries using the following financial data: Debt ratio = 60% (Total Liabilities/Total Assets) Quick ratio = 0.95 (Current Assets-inventory)/Current Liabilities Total asset turnover = 2.00 Sales/Total Asset Days sales outstanding = 24 days (Accounts receivable/(sales÷365)) Gross profit margin = 20% (Sales – cost of goods sold)/sales Inventory turnover = 8.0 Cost of goods sold/inventory Balance Sheet Cash Accounts...
Consider the following financial data for J. White Industries: Total assets turnover: 1.5 Gross profit margin...
Consider the following financial data for J. White Industries: Total assets turnover: 1.5 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% Total liabilities-to-assets ratio: 35% Quick ratio: 0.85 Days sales outstanding (based on 365-day year): 36 days Inventory turnover ratio: 6.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Complete the balance sheet and sales information...
The financial statements of Snapit Company are given below. Snapit Company Income Statement (2009) Sales $...
The financial statements of Snapit Company are given below. Snapit Company Income Statement (2009) Sales $ 4,000,000 Cost of goods sold 3,040,000 Gross profit 960,000 Selling & administrative expenses 430,000 Operating profit 530,000 Interest expense 160,000 Income before tax 370,000 Tax expense 148,000 Net income $ 222,000 Balance Sheet 2009 2008 Cash $ 60,000 $ 50,000 Accounts receivable 550,000 500,000 Inventory 690,000 620,000 Total current assets $ 1,300,000 $ 1,170,000 Fixed assets 1,300,000 1,230,000 Total assets $ 2,600,000 $ 2,400,000...
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...
Based on the Income Statement and Balance Sheet for the XYZ Corporation (see below): a) ...
Based on the Income Statement and Balance Sheet for the XYZ Corporation (see below): a) create the Pro Forma statement for 2018 given the following assumptions: - sales increase by 20% - all items vary directly with sales (except for Notes Payable, LTD, Owners Equity) - the company is currently operating at 100% capacity - the dividend payout ratio stays at 50% Income Statement 2017 Pro Forma 2018 Sales $3,000,000 Cost of Goods Sold 2,000,000 Depreciation 300,000 EBIT...
2018 2017 Income Statement Information Sales revenue Cost of goods sold Net income $ $ 10,440,000...
2018 2017 Income Statement Information Sales revenue Cost of goods sold Net income $ $ 10,440,000 6,827,760 360,000 8,400,000 5,900,000 248,000 Balance Sheet Information Current assets Long-term assets $ 1,600,000 2,200,000 $ 1,500,000 1,900,000 Total assets $ 3,800,000 $ 3,400,000 $ Current liabilities Long-term liabilities Common stock Retained earnings 1.200,000 1,500,000 800,000 300,000 900.000 1,500,000 800,000 200,000 Total liabilities and stockholders' equity 3,800,000 $ 3,400,000 Required: 1. Calculate the following profitability ratios for 2018 (Round your answers to 1 decimal...
Find the profit margin, ROA, and ROE for each period. X2 X3 X4 $2,500,000 3.200,000 3,500,000...
Find the profit margin, ROA, and ROE for each period.
X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS RETAINED EARNINGS 125,000 87,000 56,550 7,850 50,000 40,000 CASH ACCOUNTS...
Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year...
Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Sales $ 3,570,000 Cost of goods sold 2,200,000 Gross profit $ 1,370,000 Selling and administrative expense 687,000 Depreciation expense 309,000 Operating income $ 374,000 Interest expense 80,200 Earnings before taxes $ 293,800 Taxes 170,000 Earnings after taxes $ 123,800 Preferred stock dividends 10,000 Earnings available to common stockholders $ 113,800 Shares outstanding 150,000 Earnings per share $ 0.76 Statement of...
USE THE FOLLOWING DATA TO ANSWER QUESTIONS 35-40 Annual Income Statements 2013 Sales 500,000 COGS ????...
USE THE FOLLOWING DATA TO ANSWER QUESTIONS 35-40 Annual Income Statements 2013 Sales 500,000 COGS ???? Gross profit 380,000 Oper. exp 225,000 Depreciation 15,000 Operating profit 140,000 Interest exp. 5,000 EBT 135,000 Taxes 50,000 Net Income 85,000 2014 560,000 149,350 410,650 250,100 15,000 145,550 5,000 140,550 56,000 84,550 2014 Cash Accounts rec Inventories Current Assets Net fixed assets Total Assets Annual Balance Sheets 2013 450,000 275,000 280.000 1,005,000 1.125.000 2,130,000 478,500 250,000 325,000 1,053,500 ??? 2,293,500 Notes payable Accounts payable...
Consider the following financial data for J. White Industries: Total assets turnover: 1.5 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% Total liabilities-to-assets ratio: 35% Quick ratio: 0.85 Days sales outstanding (based on 365-day year): 36 days Inventory turnover ratio: 6.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Complete the balance sheet and sales information...
2018 2017 Income Statement Information Sales revenue Cost of goods sold Net income $ $ 10,440,000 6,827,760 360,000 8,400,000 5,900,000 248,000 Balance Sheet Information Current assets Long-term assets $ 1,600,000 2,200,000 $ 1,500,000 1,900,000 Total assets $ 3,800,000 $ 3,400,000 $ Current liabilities Long-term liabilities Common stock Retained earnings 1.200,000 1,500,000 800,000 300,000 900.000 1,500,000 800,000 200,000 Total liabilities and stockholders' equity 3,800,000 $ 3,400,000 Required: 1. Calculate the following profitability ratios for 2018 (Round your answers to 1 decimal...
Find the profit margin, ROA, and ROE for each period.
X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS RETAINED EARNINGS 125,000 87,000 56,550 7,850 50,000 40,000 CASH ACCOUNTS...
USE THE FOLLOWING DATA TO ANSWER QUESTIONS 35-40 Annual Income Statements 2013 Sales 500,000 COGS ???? Gross profit 380,000 Oper. exp 225,000 Depreciation 15,000 Operating profit 140,000 Interest exp. 5,000 EBT 135,000 Taxes 50,000 Net Income 85,000 2014 560,000 149,350 410,650 250,100 15,000 145,550 5,000 140,550 56,000 84,550 2014 Cash Accounts rec Inventories Current Assets Net fixed assets Total Assets Annual Balance Sheets 2013 450,000 275,000 280.000 1,005,000 1.125.000 2,130,000 478,500 250,000 325,000 1,053,500 ??? 2,293,500 Notes payable Accounts payable...
Most questions answered within 3 hours.
-
Computer Programming II CS141(Java)
Mention the appropriate relationship between following
classes:
HOD–StaffMember
Car–Ferrari
Student-Address
BankAccount–FixedAccount
House-Building...
asked 21 minutes ago -
Assume one of your finals has 50 questions on it, and
lucky for you, it's all...
asked 1 hour ago -
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 3 hours ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 3 hours ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 3 hours ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 3 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 4 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 4 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 7 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 8 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 8 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 8 hours ago