You are given the following information for Smashville, Inc. Cost of goods sold: $ 224,000 Investment income: $ 2,400 Net sales: $ 389,000 Operating expense: $ 90,000 Interest expense: $ 7,400 Dividends: $ 15,000 Tax rate: 35 % Current liabilities: $ 24,000 Cash: $ 21,000 Long-term debt: $ 24,000 Other assets: $ 40,000 Fixed assets: $ 136,000 Other liabilities: $ 5,000 Investments: $ 44,000 Operating assets: $ 38,000 Calculate the gross margin, the operating margin, return on assets, and return on equity.

You are given the following information for Smashville, Inc. Cost of goods sold: $ 224,000 Investment income: $ 2,400 Net sales: $ 389,000 Operating expense: $ 90,000 Interest expense: $ 7,400 Dividends: $ 15,000 Tax rate: 35 % Current liabilities: $ 24,000 Cash: $ 21,000 Long-term debt: $ 24,000 Other assets: $ 40,000 Fixed assets: $ 136,000 Other liabilities: $ 5,000 Investments: $ 44,000 Operating assets: $ 38,000 Calculate the gross margin, the operating margin, return on assets, and return on equity.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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