Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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1. Suppose you are given the following information for Bayside Bakery: sales = $30,000; addition to
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- Calculate the profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). How has the company’s profitability changed during the last year? A computer manufacturer has financial statements as follows: Income Statements for Year Ending December 31 (Thousands of Dollars) 2019 2018 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (25%) 22,183 21,475 Net income $66,547 $64,425 Common dividends $56,609 $54,115 Addition to retained earnings $9,938 $10,310 Balance Sheets for Year Ending December 31 (Thousands of Dollars) Assets 2019 2018 Cash and…arrow_forwardFrom the lifeboat activity, you learned about a few basic ratios. Using the financial information below, what is this company's net profit margin? (11750n your text, this is just plain "profit margin.") revenues = $502,451 • cost of revenues = $235,911 • EBIT = $111,224 • taxes = $25,692 • interest expense = $17,055 • total assets = $446,549 • shareholders' equity = $320,011 Enter your answer as a percentage rounded to the first decimal. Do not enter dollar signs, percent signs, or commas. For example, if you calculated the answer in decimal form of 0.10487, you would enter for the answer 10.5. Or if you calculated 0.046201, you would enter for the answer 4.6.arrow_forwardIt is due today. Please help! Can you help me find/solve the following? 1. PRIME COST (F+B+LABOR) 2. TOTAL COSTS OF SALES 3. TOTAL GROSS PROFIT 4. TOTAL INCOME 5. TOTAL INCOME LESS CONTROLLABLE 6. TOTAL OCCUPANCY COSTS 7. INCOME BEFORE INT, DEPR & TAX 8. TOTAL INTEREST EXPENSES 9. TOTAL DEPRECIATION EXPENSES 10. NET PROFIT or (LOSS)arrow_forward
- If a retail store has a current ratio of 3.7 and working capital of $205, 200. What are the total of the current assets? Select one: a. $55, 500. b. $205, 200. c. $759, 240. d. $281, 200.arrow_forwardConsider the streams of income given in the following table: a. Find the present value of each income stream, using a discount rate of 4%, then repeat those calculations using a discount rate of 8%. b. Compare the calculated present values and discuss them in light of the fact that the undiscounted total income amounts to $14,000 in each case. a. The present value of income stream A. using a discount rate of 4% is §. (Round to the nearest cent) Data table Income Stream End of Year A $5,000 $4,000 $3,000 $2,000 $2,000 $3,000 1 $4,000 4 $5,000 Total $14,000 $14,000 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Clear all Check answer Help rarrow_forwardSelected information for 5 companies is reproduced below: a) Calculate the net profit ratio for each of the companies below. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%) Zcom Inc. X-cell Inc. Velor Inc. Allarco Inc. Gulf Corp. $93,000 $67,000 $75,000 $17,000 $15,000 Net Income. Net Sales Net profit Ratio 164,000 188,000 96,000 54,000 123,000 b) Which of the companies is the most profitable according to the net profit ratio? c) Which of the companies generates the least profit as a percentage of sales?arrow_forward
- Subject :- Accountigarrow_forwardYou are given the following information for Smashville, Incorporated. $249,000 $ 2,900 $ 394,000 $ 92,000 $ 7,400 $ 13,000 Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: 21% Gross margin Operating margin Return on assets Return on equity $ 22,000 $ 21,000 $9,000 $ 37,000 $ 139,000 $ 5,000 $ 13,000. $ 49,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. % % % %arrow_forwardAce Industries has current assets equal to $4 million. The company's current ratio is 2.0, and its quick ratio is 1.7. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current Liabilities $ Inventory $arrow_forward
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