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11 pts INCOME STATEMENT Sales/Revenue COGS excluding D&A Depreciation & Amortization Expense Gross Income EBIT SG&A Expense U
Consolidated Net Income 691 801 2020 ONLY AVG ASSET TURNOVER INTEREST BURDEN TAX BURDEN EBIT MARGIN EQUITY MULTIPLIER RET ON
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Answer #1

Average Assets = (14555+12469)/2 = 13512

Average Equity = (5450+5527)/2 = 5488.5

Average Asset Turnover = Revenue / Average Assets = 19974 / 13512 = 1.478242

Interest Burden = Earning before Tax / Earning Before Interest and Tax = 901 / (901+207) = 0.8013177

Tax Burden = Net Income / Earning before Tax = 691 / 901 = 0.766926

EBIT Margin = EBIT / Revenue = (901+207) / 19974 = 0.082001

Equity Multiplier = Average Assets / Average Equity = 13512 / 5488.5 = 2.461875

Return on Average Equity = Net Income / Average Equity = 691 / 5488.5 = 12.59%

Return on Average Equity = Average Asset Turnover X Interest Burden X Tax Burden X EBIT Margin X Equity Multiplier = 12.59%

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