Scratch Pad A shareholder has received the following summarised financial results for Scruff Co for the last year: Sm Ordinary shareholders funds 25 Non-current liabilities 6 Operating profit Finance charges 2 Taxation 1 The industry in which Scruff Co operates has the following average financial performance: Return on equity 14% 25% Return on capital employed Which TWO of the following statements are true? Scruff Co's return on capital employed is lower than the industry average Scruff Co's return on equity is higher than the industry average Scruff Co's return on capital employed is higher than the industry average Scruff Co's return on equity is lower than the industry average 7

provide both answer please

Uramilaben

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net)         $982,500 Liabilities:             Current liabilities     $131,000       Note payable, 6%, due in 15 years     655,000       Total liabilities         $786,000 Stockholders' equity:             Preferred $2 stock, $100 par (no change during year)         $471,600   Common stock, $10 par (no change during year)         471,600 Retained earnings:             Balance, beginning of year $504,000           Net income 254,000   $758,000       Preferred dividends $9,432           Common dividends 119,768   129,200       Balance, end of year         628,800 Total stockholders' equity         $1,572,000 Sales         $11,035,200 Interest expense         $39,300 Assuming that total assets were $2,240,000 at the beginning of the current fiscal year, determine the…

A company's year-end selected financial data is shown below. Year 2 Year 1 Current assets $250,000 $175,000 Total assets 600,000 500,000 Total liabilities 300,000 225,000 Net sales 200,000 150,000 Net income 75,000 60,000 The company's rate of return on assets and rate of return on equity for Year 2 are: a. 12% and 22%, respectively. Ob. 13% and 25%, respectively. Oc. 14% and 26%, respectively. Od. 36% and 25%, respectively.

The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 32,000 Debt 93,200 Equity $ 125,200 Total Income Statement Sales Costs Taxable income Tax (218) Net Income $91,200 Current assets 66,150 Fixed assets $ 25,050 5,261 Total $ 19,789 Sustainable growth rate Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 42,000 83,200 $ 125,200 %

The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,760 27,450 $ 39,210 Sales Costs Taxable income Taxes (24%) Net income $19,200 13,050 $ 6,150 Sustainable growth rate 1,476 $4,674 Current assets Fixed assets Total Debt Equity % Total Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) $ 15,880 23,330 $ 39,210

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