Question

Assume the following data for Cable Corporation and Multi-Media Inc. Cable Multi-Media Inc. 31,800 117,000 331,000 2,360,000
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:

A-1)

Return On Stock holder equity

Cable corporation= Net Income / Share holder equity =31800/240000=13.25%

Multi Media =117000/431000=27.15%

A-2)

From above calculation we find that Multi Media has higher return.

B)

Cable Corporation Multi Media
Net income/Sales 9.61% 4.96%
Net Income/Total Sales 7.61% 12.21%
Sales/Total Assets 79.19% 246.35%
Debt/Total Assets 42.58% 55.01%
Add a comment
Know the answer?
Add Answer to:
Assume the following data for Cable Corporation and Multi-Media Inc. Cable Multi-Media Inc. 31,800 117,000 331,000 2,360,000 418,000 178,000 240,000 Net income Sales Total assets Total debt Stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Assume the following data for Cable Corporation and Multi-Media Inc Cable Multi-Media Inc. Corporation Net income...

    Assume the following data for Cable Corporation and Multi-Media Inc Cable Multi-Media Inc. Corporation Net income Sales Total assets Total debt Stockholders' equity $ 34,400 $ 128,000 2,700,000 970,000 468,000 502,000 364,000 448,000 237,000 211,000 a-1. Compute return on stockholders' equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Return on Stockholders Equity Cable Corporation Multi-Media, Inc. a-2. Which firm has the higher return? Cable Corporation Multi-Media Inc b. Compute the following additional ratios...

  • 8. 2.77 points Assume the following data for Cable Corporation and Multi-Media Inc. Net income Sales...

    8. 2.77 points Assume the following data for Cable Corporation and Multi-Media Inc. Net income Sales Cable Corporation $ 30,700 336,000 485.000 229,000 256.000 Multi-Media Inc. $ 115.000 2,370,000 919.000 465.000 454,000 Total debt Stockholders' equity a-1. Compute return on stockholders' equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Return on Stockholders Equity Cable Corporation Multi-Media, Inc. a-2. Which firm has the higher return? Cable Corporation Multi-Media Inc. b. Compute the following additional...

  • Assume the following data for Cable Corporation and Multi-Media Inc.            Cable       ...

    Assume the following data for Cable Corporation and Multi-Media Inc.            Cable            Corporation    Multi-Media Inc. Net income    $    35,800        $ 128,000    Sales            346,000       2,700,000    Total assets        449,000       929,000    Total debt        201,000    523,000    Stockholders' equity    248,000    406,000    a-1. Compute return on stockholders’ equity for both firms a-2. Which firm has the higher...

  • Save 5 Cable Corporation Net Income Sales Total assets Total debt Stockholders' equity MultiMedia ine $...

    Save 5 Cable Corporation Net Income Sales Total assets Total debt Stockholders' equity MultiMedia ine $ 139,000 2,120,000 925,000 473,000 447.000 314,000 468,000 144.000 274,000 16.66 point eBook 6-1. Compute return on stockholders' equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Print References Cable Corporation Mus Media, Inc Return on Stockholders Equity 11 201 3110 --2. Which firm has the higher return? Cable Corporation • Multi Media Inc b. Compute the following additional...

  • Multi-Media Inc. Net income Sales Total assets Total debt. Stockholders' equity Cable Corporation $ 31,200 317.000...

    Multi-Media Inc. Net income Sales Total assets Total debt. Stockholders' equity Cable Corporation $ 31,200 317.000 402 000 153,000 239 000 $ 140,000 2,700.000 965 000 542.000 423,000 page 82 a. Compute the return on stockholders' equity for both firms using Ratio 3a. Which firm has the higher return? b. Compute the following additional ratios for both finns: Net income/Sales Net income/Total assets Sales/Total assets Debt/Total assets c. Discuss the factors from part b that added or detracted from one...

  • Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets...

    Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets of $124,000,000 and stockholders' equity of $50,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. (Round answers to 2 decimal places, e.g. 12.25 or 12.25%.) Profit margin Total assets turnover times ROA ROE

  • Jodie Foster Care Homes Inc. shows the following data Total Stockholders Year Net Income Assets 20x1...

    Jodie Foster Care Homes Inc. shows the following data Total Stockholders Year Net Income Assets 20x1 S 138,000 S 2,280,000 5 959,000 20X2 20x3 20x4 Equity Total Debt 53,000 185,000 2,440,000 1,520,000 228,000 2,880,000 1,950,000 1321,000 996,000 920,000 730,000 2,110,000 1,114,000 a-1. Compute the ratio of net income to total assets for each year. (Input your answers as a percent rounded to 2 decimal places.) Year Return on 20x1 20X2 20x3 20X4 Assets a-2. What is the trend in the...

  • 1. Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000.The company has total...

    1. Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000.The company has total assets of $116,000,000 and stockholders’ equity of $40,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. Profit margin: Total assets turnover: ROA: ROE: 2.Crane Sports Innovations has disclosed the following information: EBIT = $22,680,000 Net income = $12,600,000 Net sales = $81,000,000 Total debt = $34,000,000 Total assets = $84,000,000 Compute the following ratios...

  • Wal-Mart Stores, Inc. Target Corporation Income Statement Data for Year Net sales Cost of goods s...

    Wal-Mart Stores, Inc. Target Corporation Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $65,300 45,000 14,000 660 $417,000 301,000 79,000 1,800 (85) (380) 1,500 4,055 7,100 $27,720 Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders $16,000 27.400 $43,400 $11,000 17,800 14,600 $50,000 121,000 $171,000 $54,000 43,000 74,000 $171,000...

  • . Acme Corporation has $1,200,000 in assets and $700,000 of debt. It reports net income of...

    . Acme Corporation has $1,200,000 in assets and $700,000 of debt. It reports net income of $200,000. A )What is the return on assets? B) What is the return on stockholder’s equity? C) If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT