Problem 29-2 Performance measures Keller Cosmetics maintains an operating profit margin of 8.70% and a sales-to-assets ratio of 3.30. It has assets of $640,000 and equity of $440,000. Assume that interest payments are $44,000 and the tax rate is 34%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity 14.41 % 20.33 %

Problem 29-2 Performance measures Keller Cosmetics maintains an operating profit margin of 8.70% and a sales-to-assets ratio of 3.30. It has assets of $640,000 and equity of $440,000. Assume that interest payments are $44,000 and the tax rate is 34%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity 14.41 % 20.33 %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

See similar textbooks

Similar questions

Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $49,896, invested assets of $198,000, and sales of $712,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1% b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3%
Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $43,578, invested assets of $269,000, and sales of $726,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $17,800, invested assets of $89,000, and sales of $178,000. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1 % b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3 %
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $72,576, invested assets of $224,000, and sales of $806,400. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Margin, Turnover, Return on Investment Pelak Company had sales of $4,945,000, expenses of $4,566,000, and average operating assets of $3,690,000. Required: 1. Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin Turnover % 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. %
Edison Company reported the following for the current year: $ 84,000 59,000 21,080 63,000 77,080 Net sales Cost of goods sold Net income Beginning balance of total assets Ending balance of total assets Compute (a) profit margin and (b) return on total assets. Complete this question by entering your answers in the tabs below. Profit Margin Ratio Compute the return on total assets. Return On Total Assets Numerator: 7 7 7 Return On Total Assets Denominator: = Return On Total Assets Return on total assets II =
COURSE: ACCOUNTABILITY Alpha Company reports $125,636,256 as revenue from ordinary activities and the cost of ordinary activities corresponds to 30% over revenue, what is the gross margin?Select one:a. $42,669,159b. $37,690,877c. $87,945,379d. $21,636,639e. $39,696,101
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.5 Return on assets (ROA) 4% Return on equity (ROE) 7% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: _______ % Liabilities-to-assets ratio: ______% Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. _______%
Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7
Margin, Turnover, Return on Investment Pelak Company had sales of $4,974,000, expenses of $4,566,000, and average operating assets of $4,380,000. Required: 1. Compute the operating income.$fill in the blank 1 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin fill in the blank 2 % Turnover fill in the blank 3 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.fill in the blank 4 %