Total Asset Turnover =Sales/Total Assets | ||||||
A | Sales | $4,690,000 | ||||
B | Total Assets | $1,999,000 | ||||
C=A/B | Total Asset Turnover | 2.346173087 | ||||
Total Asset Turnover | 2.35 | times | ||||
Operating Profit margin =Operating Profit/Sales | ||||||
A | Operating Profit=Net Operating Income | $678,000 | ||||
B | Sales | $4,690,000 | ||||
C=A/B | Operating Profit Margin | 0.1445629 | ||||
Operating Profit Margin | 14.5% | |||||
Operating Return on Assets=Net Operating Income/Total assets | ||||||
A | Net Operating Income | $678,000 | ||||
B | Total assets | $1,999,000 | ||||
C=A/B | Operating Return on Assets | 0.339169585 | ||||
Operating Return on Assets | 33.9% | |||||
b | Total Assets after new investment | $3,029,000 | (1999000+1030000) | |||
Operating Profit Margin | 13.40% | |||||
Sales | $4,690,000 | |||||
Net Operating Income=4690000*13.4%= | $628,460 | |||||
New Operating Return on assets | 0.207481017 | (628460/3029000) | ||||
New Operating Return on assets | 20.75% | |||||
c | New Operating Income | $628,460 | ||||
Interest expense=106000+48000= | $154,000 | |||||
Earning Before taxes | $474,460 | |||||
Taxes (35%) | $166,061 | |||||
A | Net Income | $308,399 | ||||
Owners equity before new investment | $999,500 | |||||
Addition to Owners Equity=1030000/2= | $515,000 | |||||
B | Total Equity after new investment | $1,514,500 | ||||
C=A/B | Return on owners equity | 0.203630901 | ||||
Return on owners equity | 20.4% | |||||
need help with part C. thanks (Financial statement analysis) The annual sales for Salco, Inc. were $4.69 million last ye...
P4- 31 (problem) Financial statement analysis The annual sales for Salco, Inc. were $4.51 million last year. The firms end of year balance sheet was as follows (will post) Salco's income statement for the year was as follows (will post) A. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. B. Salco plans to renovate one of it's plants and the renovation will require an added investment in plant and equipment of $1.01 million. The firm...
(Financial statement analysis) The annual sales for Salco, Inc. were $4.66 million last year. The firm's end-of-year balance sheet was as follows: B. Salco's income statement for the year was as follows: a. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $1.01 million. The firm will maintain its present debt ratio of 50...
P4-31 (problem) Financial statement analysis The annual sales for Salco, Inc. were $4.51 million last year. The firms end of year balance sheet was as follows (will post) Salco's income statement for the year was as follows (will post) A. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. B. Salco plans to renovate one of it's plants and the renovation will require an added investment in plant and equipment of $1.01 million. The firm will...
(Financial statement analysis) The annual sales for Salco, Inc. were $4.43 million last year. The firm's end-of-year balance sheet was as follows Current assets $491,000 Liabilities $993,500 Net fixed assets 1,496,000 Owners' equity 993,500 Total Assets $1,987,000 Total $1,987,000 Salco's income statement for the year was as follows Sales $4,430,000 Less: Cost of goods sold (3,492,000) Gross profit $938,000 Less: Operating expenses (504,000) Net operating income $434,000 Less: Interest expense (98,000) Earnings before taxes $336,000 Less: Taxes (35%) (117,600) Net...
The annual sales for Salco, Inc. were $ 4.51 million last year. The firm's end-of-year balance sheet was as follows: Current assets $510,000 Liabilities $1,016,500 Net fixed assets 1,523,000 Owners' equity 1,016,500 Total Assets 2,033,000 Total $2,033,000 Salco's income statement for the year was as follows: Sales $4,510,000 Less: Cost of goods sold (3,507,000) Gross profit $1,003,000 Less: Operating expenses (496,000) Net operating income $507,000 Less: Interest expense (91,000) Earnings before taxes $416,000 Less: Taxes (35 %35%) (145,600) Net income...
The annual sales for Salco, Inc. were $4.49 million last year. The firm's end-of-year balance sheet was as follows Current assets $507,000 Liabilities $1,002,500 Net fixed assets 1,498,000 Owners' equity 1,002,500 Total Assets $2,005,000 Total $2,005,000 Salco's income statement for the year was as follows Sales $4,490,000 Less: Cost of goods sold (3,491,000) Gross profit $999,000 Less: Operating expenses (508,000) Net operating income $491,000 Less: Interest expense (92,000) Earnings before taxes $399,000 Less: Taxes (35%) (139,650) Net income $259,350 a....
(Evaluating current and pro forma profitability) The annual sales for Salco Inc. were $4.55 million last year. All sales are on credit. The firm's end-of-year balance sheet and income statement were in the popup window: a. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants, which will require an added investment in plant and equipment of $1.01 million. The firm will maintain its present debt ratio of...
Only Part C:. "before the incestment the return on owners equity was (blank) %? & did the renovation have a favorable effect on the profitibility of the firm? FIN-320-R2892 Principles of Finance 19EW2 Homework: 4-2 MyFinanceLab Assignment Score: 3.57 of 5 pts 11 of 12 (12 complete) P4-31 (similar to) (Financial statement analysis) The annual sales for Salco, Inc were $4.69 milion last year The firm's end-of-year balance sheet was as follows: Salco's income statement for th a. Calculate Salco's...
(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 annual sales for Jones, Inc. were $4.62 million last year. The firm's end-of-year balance sheet was as follows: Current assets: $ 505,000 Liabilities: $992,000 Net fixed assets: $1,479,000 Owners equity: $992,000 Total assets: $1,984,000 Total: $1,984,000 Jones income statement for the year was as follows: Sales $4,620,000 Less: cost of goods sold (3,492,000) Gross profit $1,128,000 Less: operating expenses (501,000) Net operating income $627,000 Less: interest expense (92,000) Earnings before taxes $535,000 Less: taxes (35%) (187,250) Net income $347,750...