Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 72.5%. Based on the DuPont equation, what was Vaughn's ROE? Select the correct answer. a. 31.11% b. 30.88% c. 30.19% d. 30.42% e. 30.65%

Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 72.5%. Based on the DuPont equation, what was Vaughn's ROE? Select the correct answer. a. 31.11% b. 30.88% c. 30.19% d. 30.42% e. 30.65%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The Paulson Company’s year-end balance sheet is shown below. Its cost of commonequity is 14%, its…

A: cost of common equity = 14.00% before tax cost of debt = 10% Tax rate = 40% Total debt = $1167…

Q: Last year, Thomas Co. had a profit margin of 10%, total assets turnover of 0.5, and a debt ratio of…

A: Given: Last year data - Profit margin =10% ----------------------(Eq I) Total Asset Turnover =…

Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its…

A: WACC (weighted average cost of capital) refers to the average cost that is paid by a company to…

Q: Accutune Audio reported the following amounts in its December 31, 2013, and 2012 financial…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: The most recent financial statements for Bello Co. are shown here: Income Statement Balance…

A: Sustainable growth rate is the maximum rate at which the company can grow without borrowing or…

Q: Bostian, Inc. has total assets of $520,000. Its total debt outstanding is $185,000. The Board of…

A: Debt-to- asset ratio is the percentage of the debt with respect of total asset Debt-to-assets…

Q: The most recent financial statements for Cardinal, Incorporated, are shown here: Balance Sheet $…

A: The current costs/sales ratio, dividend payment ratio, and assets/sales ratio can be used to…

Q: Suppose that for 2010 Aquarius company's current assets totaled $60,000; total assets totaled…

A: Solution:- Introduction:- Debt to equity ratio is a financial ratio that measures the company's…

Q: Toyto Corp. has net working capital of $1,370, current liabilities of $3,720 and inventory of…

A: Net Working Capital: Cash, accounts receivable/customers' unpaid bills, and inventories of raw…

Q: Last year Vaughn Corp. had sales of $310,000 and a net income of $17,574, and its year-end assets…

A: Du Pont equation ROE=NET PROFIT MARGIN X ASSETS TURNOVER RATIO X EQUITY MULTIPLIER

Q: The most recent financial statements for Tran Company are shown here: Income Statement Sales Costs $…

A: The sustainable growth rate (SGR) is the highest rate at which a company's earnings may expand…

Q: he most recent financial statements for Bello Co. are shown here: Income Statement Balance…

A: Given: Dividend payout ratio is 28%. The table is: Income statement Balance Sheet Sales…

Q: he Duval Corporation has recently reported the following information: Net income…

A: Formulas:

Q: Tibbs Inc. had the following data for the year ending 12/31/12: Net income = $400; Net operating…

A: ROIC is calculated by dividing NOPAT by the total net operating capital.

Q: The most recent financial statements for Bello Co. are shown here: Income Statement Balance…

A: Sustainable growth rate is the growth rate which shows the maximum growth of the company without…

Q: At the beginning of the year, Norwood Pass Industries had $240,000 in total assets and a…

A: The debt-to-asset ratio is calculated by dividing the total debts by the total assets. This ratio…

Q: The Paulson Company’s year-end balance sheet is shown below. Its cost of common equity is 14%, its…

A: Weighted average cost of capital is the average rate at which company procures all the funds from…

Q: Last year K. Billingsworth & Co. had earnings per shareof $4 and dividends per share of $2.…

A: The calculation is shown: Hence, debt to total capital is 33.33%.

Q: A firm generated $697,000 in Sales Revenue, on which it earned Net Income of $139,400. The firm…

A: In sustainable growth rate assumption, the firm will not change its debt equity relationship. We…

Q: The Rossdale Company has a ratio of long-term debt to long-term debt plus equity of .34 and a…

A: We need to use DuPont equation to solve this problem ROE (DuPont formula) = Net profit margin *…

Q: Lamar , Inc. has sales of $8500, total assets of $2500, and a debt to equity ratio of 0.8, if its…

A: Net income refers to the income or amount which is earned by the enterprise by rendering services or…

Q: Bulldogs Inc. is funded by both debt and equity and has a total liabilities to total asset ratio of…

A: Retained Earnings Breakpoint = Retained Earnings ÷ Weight of equity •Weight of equity =…

Q: Las year Justine Corp. had sales of P315,000 and a net income of P17,382, and its year-end assets…

A: First we will figure the obligation according to underneath: Obligation to add up to resource…

Q: National Co. had P24,000,000 in sales last year. The company's net income was P500,000, its total…

A: The ratio analysis helps to analyse the financial statements of the business with assets and…

Q: The Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and…

A: Average collection period is period required to receive all accounts receivable that means money…

Q: The most recent financial statements for Assouad, Inc., are shown here: Income Statement…

A: External financing needed is the amount of additional funds required by the company to support the…

Q: Last year the P.M. Postem corporation had sales of $419,000, with a cost of goods sold of $111,000.…

A: Income statement is the financial statement of the company that shows the revenue and expenditures…

Q: Bostian, Inc. has total assets of $665,000. Its total debt outstanding is $185,000. The Board of…

A: A ratio that represents the proportion of the asset is financed by the fund that is raised by using…

Q: The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet…

A: Sustainable growth rate The sustainable growth rate is that rate that involves maximizing revenue…

Q: 1. ABC Had sales of P12,000,000 of which all were on credit. Its operations resulted to a gross…

A: Gross profit = Credit Sales × Gross profit ratio=P 12,000,000 × 60%=P 7,200,000 Cost of goods sold…

Q: Easter Egg and Poultry Company has $1,760,000 in assets and $608,000 of debt. It reports net income…

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: Oregon Office Supply had 24,000,000 in sales last year. The company’s net income was 400,000, its…

A: SALE 24,000,000 NET INCOME 400,000 TOTAL ASSETS TURNOVER 6.0 ROE 15% DEBT RATIO ?

Q: The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement…

A: Net Income: It is the sum of revenue that is left in the business after paying off all the costs of…

Q: At last year’s end, total assets for Roberts Inc. were $1.2 million and accounts payable were…

A: At last year’s end, total assets for Roberts Inc. were $1.2 million and accounts payable were…

Q: Green Penguin Pencil Company has a total asset turnover ratio of 6.00x, net annual sales of $25…

A: Debt ratio indicates extent of leverage. The debt ratio is defined as the ratio of total debt to…

Q: The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales…

A: Given: Particulars Amount Sales $18,000.00 COGS $10,800.00 Taxable income $7,200.00 Taxes…

Q: Boots and Shoes inc has sales of $7525, total assets of $3215 and a debt equity ratio of 1.30. If…

A: Sales = $7525 Total assets = $3215 Debt to equity ratio = 1.30 Equity to asset ratio = 1/(1+Debt to…

Q: Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets…

A: Given, Sales = $325,000 Assets = $250,000 Net Income = $19,000 Debt-to-total-capital ratio = 45%

Q: The most recent financial statements for Bello Company are shown here: Income Statement Balance…

A: A rate that provides information about the growth of a company that can be achieved without using…

Q: The most recent financial statements for live co. Are shown here: income statement: sales $3,000,…

A: Calculation of internal growth rate: Answer: Internal growth rate is 5.15%

Q: The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income…

A: Internal Growth Rate: A company's internal growth rate (IGR) is the greatest amount of growth that…

Q: The total assets of Blue Co. is funded by both debt and equity with a debt to equity ratio of 100%.…

A: Here discuss about the details of to find out the additional amount which are added into the…

Q: Last year, ABC Inc. had sales of $375,000 and a net income of $25,000, and it had total assets of…

A: Given: Sales = $375,000 Net income = $25,000 Total assets = $350,00 Debt-to-equity (D/E) ratio =…

Question

Select the correct answer.

a. 31.11%

b. 30.88%

c. 30.19%

d. 30.42%

e. 30.65%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Last year Vaughn Corp. had sales of $310,000 and a net income of $17,574, and its year-end assets were $217,000. The firm's total-debt-to-total-assets ratio was 45.8%. Based on the Du Pont equation, what was Vaughn's ROE? Note: Do not round intermediate calculations. Group of answer choices 18.12% 16.45% 15.68% 14.94% 17.27%
Last year Ross Inc. had sales of $330,000 and a net income of $20,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 40.00%. Based on the DuPont equation, what was the ROE? A. 10.41% B. 14.80% C. 13.33% D. 12.63% E. 9.06%
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $295000. The firm's total-debt-to-total- capital ratio was 72.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. a. 5.85% b. 21.26% c. 23.42% d. 85.17% e. 6.44%
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $240,000. The firm's total-debt-to-total-capital ratio was 32.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. Ⓒa. 11.73% b. 17.38% O c. 5.85% d. 8.66% e. 7.92%
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 17.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. O a. 9.49% O b. 11.52% O c. 9.21% O d. 7.74% O e. 9.86%
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year- end assets were $250,000. The firm's total-debt-to-total-capital ratio was 47.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. O 14.48% 13.03% O 14.91% O 17.08% 11.29%
a. Last year Harrington Inc. had sales of $654,000 and a net income of $89,000, and its year-end assets were $270,000. The firm's total-debt-to-total-capital ratio was 45.0%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE?
Problem 1. Last year Justine Corp. had sales of P315,000 and a net income of P17,832, and its year-end assets were P210,000. Justine's total-debt-to-total-assets ratio was 42.5%. Based on the Du Pont equation, what was Justine's return on equity (ROE)?
9. The Merriam Company has determined that its return on equity is 15 percent. Management is interested in the various components that went into this calculation. You are given the following information: total 0.35 and total assets turnover = 2.8. What is the profit margin? debt/total assets = a. b. C. d. e. 3.48% 5.42% 6.96% 2.45% 12.82% 'c qurrent assets?
At the beginning of the year, Norwood Pass Industries had $240,000 in total assets and a debt-to-assets ratio of 0.5 or 50%. During the year, Norwood's assets increased by $80,000, and its liabilities increased by $72,000. What is the debt-to-assets ratio at the end of the year? Multiple Choice 0.4 or 40% 0.6 or 60% 1.7 or 170% 0.9 or 90%
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 42.5%. Based on the DuPont equation, what was Vaughn's ROE?
TOPIC: Financial Statement Analysis1. Calculate the debt ratio of a company that as an equity multiplier of 2.5 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively. 4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semiannually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for your final answer) 5. A company has $6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a price of $30.70 each. Calculate the…