an apparel manufacturer, reported net income (amounts in thousands) for Year 4 of $58,615 on sales of $1,460,235. It declared preferred dividends of $21,122. Preferred shareholders’ equity totaled $264,746 at both the beginning and end of Year 4. Common shareholders’ equity totaled $296,157 at the beginning of Year 4 and $364,026 at the end of Year 4. Phillips-Van Heusen had no noncontrolling interest in its equity. Total assets were $1,439,283 at the beginning of Year 4 and $1,549,582 at the end of Year 4. Compute the rate of ROCE for Year 4 and disaggregate it into profit margin for ROCE, assets turnover, and capital structure leverage ratio components.
an apparel manufacturer, reported net income (amounts in thousands) for Year 4 of $58,615 on sales of $1,460,235. It declared preferred dividends of $21,122. Preferred shareholders’ equity totaled $264,746 at both the beginning and end of Year 4. Common shareholders’ equity totaled $296,157 at the beginning of Year 4 and $364,026 at the end of Year 4. Phillips-Van Heusen had no noncontrolling interest in its equity. Total assets were $1,439,283 at the beginning of Year 4 and $1,549,582 at the end of Year 4. Compute the rate of ROCE for Year 4 and disaggregate it into profit margin for ROCE, assets turnover, and capital structure leverage ratio components.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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an
apparel manufacturer, reported net income (amounts in thousands) for Year 4 of $58,615 on
sales of $1,460,235. It declared preferred dividends of $21,122. Preferred shareholders’ equity
totaled $264,746 at both the beginning and end of Year 4. Common shareholders’ equity
totaled $296,157 at the beginning of Year 4 and $364,026 at the end of Year 4. Phillips-Van
Heusen had no noncontrolling interest in its equity. Total assets were $1,439,283 at the beginning
of Year 4 and $1,549,582 at the end of Year 4. Compute the rate of ROCE for Year 4 and
disaggregate it into profit margin for ROCE, assets turnover, and capital structure leverage ratio
components.
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