Req a. | ||||
Net Income | ||||
Net sales for the year | 42,40,000 | |||
Multiply: Profit margin | 5% | |||
Net Income | 2,12,000 | |||
Total assets: | ||||
Sales | 42,40,000 | |||
Divide: Assets turnover ratio | 2.5 | |||
Total assets: | 16,96,000 | |||
Stockholder's equity: | ||||
Total assets | 16,96,000 | |||
Less: Current liabilities | 1,41,000 | |||
Less: Long term liabilities | 3,97,000 | |||
Stockholder's equity: | 11,58,000 | |||
Return on Stockholder's equity: | ||||
Net income for the year | 2,12,000 | |||
Divide: Stockholder's equity | 11,58,000 | |||
Return on Stockholder's equity: | 18.31% | |||
Req b. | ||||
Total assets: | ||||
Sales | 42,40,000 | |||
Divide: Assets turnover ratio | 3 | |||
Total assets: | 14,13,333 | |||
Stockholder's equity: | ||||
Total assets | 14,13,333 | |||
Less: Current liabilities | 1,41,000 | |||
Less: Long term liabilities | 3,97,000 | |||
Stockholder's equity: | 8,75,333 | |||
Return on Stockholder's equity: | ||||
Net income for the year | 2,12,000 | |||
Divide: Stockholder's equity | 8,75,333 | |||
Return on Stockholder's equity: | 24.22% | |||
Check my won 2. Jerry Rice and Grain Stores has $4.240,000 in yearly sales. The firm...
Jerry Rice and Grain Stores has $4,880,000 in yearly sales. The firm earns 3 percent on each dollar of sales and turns over its assets 2.8 times per year. It has $196,000 in current liabilities and $359,000 in long-term liabilities. a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity b. If the asset base remains the same as computed in part...
Jerry Rice and Grain Stores has $4,920,000 in yearly sales. The firm earns 4.5 percent on each dollar of sales and turns over its assets 2.5 times per year. It has $127,000 in current liabilities and $327,000 in long-term liabilities. a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity b. If the asset base remains the same as computed in part...
Jerry Rice and Grain Stores has $4,800,000 in yearly sales. The firm earns 3 percent on each dollar of sales and turns over its assets 3.5 times per year. It has $120,000 in current liabilities and $310,000 in long-term liabilities. a. What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity 15.30 % CORRECT b. If the asset base remains the...
Jerry Rice and Grain Stores has $4,000,000 in yearly sales. The firm earns 3.5 percent on each dollar of sales and turns over its assets 4 times per year. It has $143,000 in current liabilities and $308,000 in long-term liabilities. a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity b. If the asset base remains the same as computed in part...
2.00 points Jerry Rice and Grain Stores has $4.910,000 in 360 000 in long serm Babaes yearly sakes The em eams 2 percent on each dollar of sales and turns over its assets 2 3 times per year it has $135,000 n current abs a. What is ts return on stockholders equity? (Do not round i ntermediate calculations. Input your answer as a percent rounded to 2 decimal places.) b. It the asset base nemains the same as computed in...
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The Optical Scam Company has forecast a sales growth rate of 25 percent for next year. Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here: INCOME STATEMENT Sales $ 32,000,000 Costs 26,309,400 Taxable income $ 5,690,600 Taxes 1,991,710 Net income $ 3,698,890 Dividends $ 1,479,556 Addition to retained earnings 2,219,334 BALANCE SHEET Assets Liabilities and Equity Current assets $ 7,360,000 Short-term debt $ 7,040,000 Long-term debt 2,240,000 Fixed assets...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,510,000, with 75 percent of sales sold on credit. STUD CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity Cash $ 39,000 Accounts payable $ 297,000 Accounts receivable 304,000 Accrued taxes 128,000 Inventory 294,000 Bonds payable (long-term) 122,000 Plant and equipment 488,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 328,000 Total assets $ 1,125,000 Total liabilities and equity $ 1,125,000 Compute the following ratios: (Use a...
Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter SNIDER CORPORATION Balance Sheet December 31, 20X1 Assets Current assets Cash Marketable securitie $ 51,800 24,200 Accounts receivable (net Inventory Total current assets 174,000 227,000 $ 477,000 63,500 Investments Plant and equipment Less: Accumulated depreciation Net plant and equipment $646,000 246,000 400,000 $ 940,500 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Notes payable Accrued taxes $ 91,100 73,400 18,400 Total...