Total annual revenue Total revenue growth rate Terminal revenue growth rate $2,850,649 5.0% 296 8.2% 3.42 Net operating profit margin (NOPM) Net operating asset turnover (NOAT) Projected total revenue for the following year would be: Select one: O a. $2,993,181 O b. $2,948,141 O c. None of these are correct d. $2.907.662
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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- Consider the following informationYear Profit Ending book value of assets Ending book value of debt1 $100 $1 030 $7202 $120 $1 060 $7403 $60 $1 000 $800At the end of year t, the company’s book value of assets and debt are $1 000 and $700, respectively. The analyst expects that after year t+3 profit will be $0 and the book values of assets and debts will not change from the prior year. The cost of equity (WACC) is 10 per cent. Calculate the present value of free cash flows for the end of each year.The following partial income statement data pertains to Tatum Toy Company's recent year completed and its forecast for the coming year (in millions): Recent $875.00 Sales Operating costs EBIT Interest expense EBT What was the expected percentage change in sales? a. 20% b. 16% c. -20% d. 55% e. 83% 625.00 $250.00 50.00 $200.00 Projected $1,050.00 682.50 $367.50 50.00 $317.5019. Using the following information, calculate the return on assets. Net income for November Total assets, November 1 Total assets, November 30 $ Identify the formula and then solve for return on assets (ROA). (Round the ROA to the nearest tenth percent, X.X%.) ROA + 4,710 55,000 102,000 + = %
- Bajaj Ltd. reported the following statistics and results for 2020: Net operating income Return on sales $ 54,000 Asset turnover 2.5 Residual income $ 10,880 Required: 1. What was the value of Bajaj's average operating assets in 2020? Average operating assets 2 If the required rate of return is 7% what Is the ROI? (Round your answer to 2 decimal places.) ROIFollowing are financial statement numbers and ratios for Martin Corp. for the year ended December 31, Year 1. Total revenue (in millions) $47,248 Net operating profit margin (NOPM) 8.8% Net operating asset turnover (NOAT) 3.3 If we expected revenue growth of 3.5% in the next year, what would projected revenue be for Year 2? Select one: a. $47,248.0 b. $44,598.3 c. None of these are correct d. $48,901.7 e. $53,205.0An estimate has the following cost and revenue cash flows. The cash flows are assumed to occur at the end of the year. (a) If interest is 10%, find the net present worth, net future worth, and net annual equivalentworth.(b) Find the rate of return. (Hint: The guessing range is 25 to 30%).(c) Present a summary of the four methods Year Cost Revenue 0 $800 $0 1 - $450 2 - $425 3 - $400
- Following are financial statement numbers and ratios for Salsa Incorporated for the year ended December 31, Year 1 (in millions). NOPAT $572.7 NOA $3,460.8 Net operating profit margin (NOPM) 15.9% Net operating asset turnover (NOAT) 1.04If we expected revenue growth of 7% in the next year, what would projected revenue be for the year ended December 31, Year 2?Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %DIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…
- Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 207,000 $4,416,000 3,665,280 750,720 328,000 $ 422,720 Beginning Balance $ 136,000 339,000 568,000 857,000 395,000 251,000 $ 2,546,000 Ending Balance $ 131,000 479,000 488,000 842,000 435,000 253,000 $ 2,628,000 $ 349,000 $ 374,000 983,000 1,189,000 983,000 1,296,000 $ 2,546,000 $ 2,628,000 The company paid dividends of $315,720 last year. The “Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…Using data available in the case, calculate the annual growth rate from 2020 to 2021 (in percentages). All calculations should be rounded to two decimals (e.g., 12.77%). > Answer is complete but not entirely correct. 2021 2020 2020-2021 Revenue 2,057,622 1,736,432 18.50 % Cost of Goods Sold 1,259,830 921,980 36.64 % Gross Profit 797,792 814,452 (1.02) % Operating Expenses 789,795 570,245 38.50 % Operating Income 7,997 244,207 2,953.73% Net Income 14,553 191,960 (92.42) %Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,118,000 in invested assets, sales of $1,204,000, income from operations amounting to $232,000, and a desired minimum return of 13%. Round your answer to two decimal places. The investment turnover for Mason Corporation is Oa. 0.86 Ob. 1.62 Oc. 1.08 Od. 1.29 Previous Next 7:34 PM CP 12/13/2020 DELL