Homework Answers
Ans:
Asset Turnover = Sales/Average operating assets = 2000,000/1,000,000
= 2
Average Operating Assets=Net Operating Income/return on investment
=$200,000/20%=1000,000
Hope this helped ! Let me know in case of any queries.
Add Answer to:
Fashionable Home Fashions reported a return on investment of 20% with sales of $2,000,000 and net...
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in...
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in millions) in its annual report: 2018 2019 Net Income $21,500 $16,134 Net Sales 49,540 52,250 Total Assets 68,734 78,128 If the company's total assets are $65,676 in 2017, calculate the company's: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for 2018 and 2019 (round answers to two decimal places) 2018 2019 a. Return on Assets Ratio...
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in...
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in millions) in its annual report: 2018 2019 Net Income $21,500 $16,134 Net Sales 49,540 52,250 Total Assets 68,734 78,128 If the company's total assets are $65,676 in 2017, calculate the company's: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for 2018 and 2019 (round answers to two decimal places) 2018 2019 0 % a. Return on...
(Financial Ratios-Investment Analysis) The annual sales for Salco, Inc., were $5,000,000 last year. The firm's end-of-year...
(Financial Ratios-Investment Analysis) The annual sales for Salco, Inc., were $5,000,000 last year. The firm's end-of-year balance sheet appeared as follows: Current assets $500,000 Net fixed assets $1,500,000 $2,000,000 Liabilities $1,000,000 common' equity $1,000,000 $2,000,000 The firm's income statement for the year was as follows: Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Earnings before taxes Less: Taxes (40%) Net income $5.000.000 (3,000,000) $2,000,000 (1,500,000) $500,000 (100,000 $400,000 (160.000) $240.000 a. Calculate...
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...
Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts...
Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity 20X2 20X1 $ 300,000 $ 200,000 2,000,000 1,800,000 900,000 700,000 The return on shareholders' equity for 20X2 is: The return on shareholders' equity for 20X2 is: Multiple Choice O 20% O 8% O 22.22% O 25% Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity...
9. Given the following: Net operating income - $35,000; Turnover = 2; Return on investment -14%....
9. Given the following: Net operating income - $35,000; Turnover = 2; Return on investment -14%. What are “Sales"?_ 10. Given the following: Sales = $700,000; Net operating income - $56,000; Return on investment - 20%. What is "Turnover? average operating assets are $500,000. What is the minimum required rate of retur? a. 10% b. 14% c. 16%. d. 20% c. 24%. Use the following information to answer questions 12 - 13: Selected sales and operating data for Division A...
BARR reported the following 2019 financial information: Sales = $5,200,000; Contribution margin = $600,000; Segment income...
BARR reported the following 2019 financial information: Sales = $5,200,000; Contribution margin = $600,000; Segment income = $430,000; Average investment = $1,000,000; The company's cost of capital was 12%. -The segment profit margin ratio (return on sales) is? -The asset turnover is? -The return on investment (ROI) for the BARR is? -Residual income for the BARR is?
Bramble Design Works generated $365,000 in operating income on sales revenue of $2,000,000. The company had...
Bramble Design Works generated $365,000 in operating income on sales revenue of $2,000,000. The company had $2,520,000 in assets on January 1 and $2,920,000 in assets on December 31 (a) Calculate Bramble's margin. (Round answer to 0 decimal places, e.g. 5%) Bramble's margin % (b) Calculate Bramble's asset turnover. (Round answer to 2 decimal places, e.g. 0.65.) Bramble's asset turnover times Calculate Bramble's return on investment. (Round answer to 2 decimal places, e.g. 512%) Bramble's return on investment %
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an...
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an investment center should be evaluated based on revenues, costs, and investments. An evaluation based on net income ignores the amount of investment the investment center required. One way to measure operating profit in relation to investment is a calculation called the return on investment. One formula for calculating return on investment is: Operating income Invested Assets ROI is effective because it takes into consideration...
Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 20%:...
Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 20%: Safe Money, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 2018 2017 Assets Cash $82,000 $71,000 Accounts Receivable 61,600 27,500 Supplies 400 500 Property, Plant, and Equipment, net 299,000 197,000 Patents, net 158,000 103,000 Total Assets $601,000 $399,000 Liabilities and Stockholders' Equity Accounts Payable $31,000 $33,000 Short-term Notes Payable 149,000 49,000 Long-term Notes Payable 199,000 129,000 Common Stock, no...
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in millions) in its annual report: 2018 2019 Net Income $21,500 $16,134 Net Sales 49,540 52,250 Total Assets 68,734 78,128 If the company's total assets are $65,676 in 2017, calculate the company's: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for 2018 and 2019 (round answers to two decimal places) 2018 2019 a. Return on Assets Ratio...
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in millions) in its annual report: 2018 2019 Net Income $21,500 $16,134 Net Sales 49,540 52,250 Total Assets 68,734 78,128 If the company's total assets are $65,676 in 2017, calculate the company's: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for 2018 and 2019 (round answers to two decimal places) 2018 2019 0 % a. Return on...
(Financial Ratios-Investment Analysis) The annual sales for Salco, Inc., were $5,000,000 last year. The firm's end-of-year balance sheet appeared as follows: Current assets $500,000 Net fixed assets $1,500,000 $2,000,000 Liabilities $1,000,000 common' equity $1,000,000 $2,000,000 The firm's income statement for the year was as follows: Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Earnings before taxes Less: Taxes (40%) Net income $5.000.000 (3,000,000) $2,000,000 (1,500,000) $500,000 (100,000 $400,000 (160.000) $240.000 a. Calculate...
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...
Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity 20X2 20X1 $ 300,000 $ 200,000 2,000,000 1,800,000 900,000 700,000 The return on shareholders' equity for 20X2 is: The return on shareholders' equity for 20X2 is: Multiple Choice O 20% O 8% O 22.22% O 25% Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity...
9. Given the following: Net operating income - $35,000; Turnover = 2; Return on investment -14%. What are “Sales"?_ 10. Given the following: Sales = $700,000; Net operating income - $56,000; Return on investment - 20%. What is "Turnover? average operating assets are $500,000. What is the minimum required rate of retur? a. 10% b. 14% c. 16%. d. 20% c. 24%. Use the following information to answer questions 12 - 13: Selected sales and operating data for Division A...
Bramble Design Works generated $365,000 in operating income on sales revenue of $2,000,000. The company had $2,520,000 in assets on January 1 and $2,920,000 in assets on December 31 (a) Calculate Bramble's margin. (Round answer to 0 decimal places, e.g. 5%) Bramble's margin % (b) Calculate Bramble's asset turnover. (Round answer to 2 decimal places, e.g. 0.65.) Bramble's asset turnover times Calculate Bramble's return on investment. (Round answer to 2 decimal places, e.g. 512%) Bramble's return on investment %
Most questions answered within 3 hours.
-
Two long, parallel wires separated by 2.85 cm carry currents in
opposite directions. The current in...
asked 1 minute from now -
The probability that Janie is wearing sunglasses is 1/4. The
probability that she is wearing sunglasses...
asked 1 minute ago -
Question # 1. Develop a list of rehabilitation journals
that publish articles concerning career counseling for...
asked 10 minutes ago -
Bryant Company has a factory machine with a book value of
$85,100 and a remaining useful...
asked 11 minutes ago -
What is the default classification for federal tax purposes of a
U.S. eligible entity with one...
asked 20 minutes ago -
1. How many grams would 4.0x1021 atoms of calcium
weigh?
2.. Calculate the percent oxygen in...
asked 13 minutes ago -
Do you believe social media is more of a help or a hindrance in
controlling crises...
asked 18 minutes ago -
Balance Equation
K2Cr2O7 + H2C2O4 2H2O 6 K[Cr(C2O4 )2 (H2O)2 ]2H2O + CO2 +
H2O
asked 20 minutes ago -
Select a position in the clinical laboratory and write an
appropriate job description and corresponding work...
asked 24 minutes ago -
Targeting the Bottom of the Pyramid
What are some of the broader societal pricing concerns faced...
asked 26 minutes ago -
Which of the following statements is correct? (3 marks)
a) Upon the public announcement of finding...
asked 26 minutes ago -
A wind turbine at sea level uses a 60 m radius blade to convert
a 10...
asked 35 minutes ago