1.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Return on assets.
2.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Compare:
Return on assets is better or worse than industry average return .
3.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Total Expenses of the company.
4.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Value of total liabilities and equities.
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Financial Accounting: Information for Decisions
- Swiss Group reports net income of $39,000 for the year. At the beginning of the year, Swiss Group had $195,000 in assets. By the end of the year, assets had grown to $245,000. What is Swiss Group's return on assets for the current year? Did Swiss Group perform better or worse than its competitors if competitors average an 13% return on assets? Complete this question by entering your answers in the tabs below. Return on Assets Group Perform What is Swiss Group's return on assets for the current year? Numerator: Denominator:arrow_forwardSwiss Group reports net income of $35,000 for the year. At the beginning of the year, Swiss Group had $160,000 in assets. By the end of the year, assets had grown to $210,000. What is Swiss Group's return on assets for the current year? Did Swiss Group perform better or worse than its competitors if competitors average an 14% return on assets? Complete this question by entering your answers in the tabs below. Return on Assets Group Perform What is Swiss Group's return on assets for the current year? Numerator: 1 1 Denominator: = Return on assetsarrow_forwardKyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is$250,000. In its most recent year, Kyzera reported net income of $65,000 on revenues of $475,000. Required What is Kyzera’s return on assets?arrow_forward
- Aneko Company reports the following: net sales of $18,000 for Year 2 and $17,100 for Year 1; end-of-year total assets of $18,200 for Year 2 and $16,800 for Year 1. Compute its total asset turnover for Year 2. Aneko’s competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover?arrow_forwardKyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent year, Kyzera reported net income of $65,000 on revenues of $475,000. Does return on assets seem satisfactory for Kyzera given that its competitors average a 12% return onassets?arrow_forwardAneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1; end-of-year total assets of $18,000 for Year 2 and $16,500 for Year 1. 1. Compute its total asset turnover for Year 2. 2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its total asset turnover for Year 2. Choose Numerator: 1 1 1 Total asset turnover Choose Denominator: = = = Total asset turnover Total asset turnover timesarrow_forward
- Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were $80 million at the beginning of the year and $88 million at the end of the year. Calculate Peyton's return on assets, profit margin, and asset turnover ratios. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5).) Return on Assets Numerator/Denominator Amounts Peyton's Palace % Profit Margin Numerator/Denominator Amounts Peyton's Palace % Asset Turnover Numerator/Denominator Amounts Peyton's Palace timesarrow_forwardSorrento Corporation's balance sheet indicates that the company has $500,000 invested in operating assets. During Year 2, Sorrento earned operating income of $50,000 on $1,000,000 of sales. Required: a. Compute Sorrento's profit margin for Year 2. b. Compute Sorrento's turnover for Year 2. c. Compute Sorrento's return on investment for Year 2arrow_forwardCrafty Inc. reported the following financial data. Sales, $180,000; operating expenses $160,000; average operating assets, $150,000; total liabilities, $98,000. The company requires a minimum 12% return on investments. What is the asset turnover ratio? O.133 O.18 O 1.2 O .111arrow_forward
- Barry's BBQ had sales revenue for the year of $450 million and net income of $75 million. Total assets were $70 million at the beginning of the year, and $80 million at the end of the year.Calculate Barry's return on assets, profit margin, and asset turnover ratios. (Do not round intermediate calculations. Round your answers to 1 decimal place.) Return on assets % Profit margin % Asset turnover timesarrow_forwardPeyton's Palace Peyton's Palace has net income of $13.5 million on sales revenue of $115 million. Total assets were $81 million at the beginning of the year and $89 million at the end of the year. Peyton's Palace Calculate Peyton's return on assets, profit margin, and asset turnover ratios. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5).) Peyton's Palace Return on Assets Numerator/Denominator Profit Margin Numerator/Denominator Asset Turnover Numerator/Denominator Prev BERAI 0 11 7 of 8 Amounts Amounts Amounts || II Next > ▪▪▪▪▪▪▪▪▪ % Help % Save & Exit Submit times Check my work of so 5 9:44 PM 5/9/2023arrow_forwardThe Carlo Company’s Household Products Division reported in 2007 sales of P15,000,000, an asset turnover ratio of 3.0, and a rate of return on average assets of 18 percent. Question: What is the percentage of net income to sales?arrow_forward
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