What is the return on assets for a firm that has a gross profit of $1.2 million, an operating profit of $550 000, a net profit of $200 000, shortterm assets of $1 million, and longterm assets of $5 million? Question content area bottom Part 1 A. 9.2 percent B. 3.3 percent C. 4 percent D. 20 percent
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- The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.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%.Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
- Maturity (years) 1 2 3 1-year Forward rate (%) 0-years from now 1.25 1-year from now 1.75 2-years from now 1.908 Using the same information, what is the value of the put option? A. $0.2063 B. $0.16 C. $7.817 O D. $6.817 Spot rate (%) 1.25 1.5019 1.70491 Cash flow $3 $3 $103Question 37 The net profit percentage in a company is 9% and the turnover to asset ratio is 3. What is the return on capital employed?Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,095,000 –- $860,000 - v Current ratio $3,095,000 ÷ $860,000 - Quick ratio $1,866,000 + $860,000 V Accounts receivable turnover $8,260,000 + [($714,000 + $740,000) ÷ 2]° Number of days' sales in receivables [(S714,000 + $740,000) ÷ 21 ÷ ($8,260,000 ÷ 365) ▪ Inventory turnover $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 21 - Number of days' sales in inventory [($1,072,000 + $1,100,000) ÷ 21 ÷…
- Question 9 Gamma Ltd has an operating income of $351316, revenue of $2595676 and total assets of $2504986. The current return on investment (ROI) of Gamma is below their expectation. To increase the ROI to 19%, the business needs to achieve an investment turnover of (Present the final answer as a 2-decimal place number, NOT as a percentage.)Question 31 Decker Enterprises Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,080 Profit before tax na 420 Taxes (25%) na 105 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 If Decker had a financing deficit, it could…19 - When vertical analysis is applied to the income statement of a business with net sales of TL 1,000,000 and non-operating expenses of TL 13,000, which of the following is the vertical analysis value of non-operating expenses (%)? a) 4.5 B) 2,5 NS) 5.5 D) 1.3 TO) 3.3
- Saved Assume a company provided the following information: 14 Net income Total assets, beginning of the year Total assets, end of the year Total liabilities, beginning of the year Total liabilities, end of the year $ 112,000 $ 1,000,000 $ 1,280,000 $ 680,000 $ 830,000 The return on equity is closest to: (Round your final answer to the whole percentage.) Multiple Choice 29%. O О 23%. 25%.Total annual revenue Total revenue growth rate Terminal revenue growth rate Net operating profit margin (NOPM) Net operating asset turnover (NOAT) Projected total revenue for the following year would be: Select one: O O O $2,850,649 5.0% 2% 8.2% 3.42 a. $2,993,181 b. $2,948,141 c. None of these are correct d. $2,907,662Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,095,000 - $900,000 Current ratio $3,095,000 ÷ $900,000 Quick ratio $1,866,000 ÷ $900,000 Accounts receivable turnover $8,250,000 ÷ [($714,000 + $740,000) ÷ 2] Number of days' sales in receivables [($714,000 + $740,000) ÷ 2]÷ ($8,250,000 ÷ 365) Inventory turnover $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2] Number of days' sales in inventory [($1,072,000 + $1,100,000) ÷ 2] ÷ ($4,100,000 ÷ 365) Ratio of fixed assets to long-term liabilities $2,690,000 + $1,690,000 Ratio of…
