Question

Financial data for U-Seam Crazy, a clothing manufacturer: 2018 Balance Sheet 2017 Assets $ 125,000 $ 130,000 480,000 430,000 490,000 2018 Income Statement 340,000 400,000 570,000 80,000 845,000 250,000 Cost of Goods Sold Gross Margin . .. Operating expenses Operating Income . . . . 3.000,000 1,180,000 553,000 627,000 120,000 507,000 200.000 $ 307,000 Plant and equipment, net . 820,000 250,000 $2,610,000 $2,600,000 Total assets Income before taxes .. Liabilities and equity Tax expense $ 340,000 S 380,000 Net income . . . . $2,610,000 $2,600,000 Total liabilities and equity The company paid dividends of $197,000 during 2017. Required: 1. Compute the company's margin, turnover, and return on investment (ROI) for the year. 2. The board has set a required return rate (e.g., WACC) of 20%; compute the company's residual income. 3. Compute the company's RONA and ROE.

Answer 1

ales 80,000. xt oo-, 28-23 % : 4180060 억 5 フ.cdD XIOD ; 17-13% isboOD torm d NOPA T N o

39: 45 % 72,6c 319,600 6,oo edus 60000 1205,000 +1260 OOD