FUND.ACCT.PRIN.(LOOSELEAF)-W/ACCESS
24th Edition
ISBN: 9781260260724
Author: Wild
Publisher: MCG
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Chapter 1, Problem 14E
Exercise 1-14 Analyzing return on assets A2
Swiss Group reports net income of $40,000 for 2019. At me beginning of 2019, Swiss Group had $200,000 in assets. By the end of 2019, assets had grown to $300.000. What is Swiss Group's 2019 return on assets?. How would you assess its performance if competitors average an 11% return on assets?
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Problem 1: Viance Queen Company
Required:
Compute for the company’s profitability and operating efficiency ratios for 2019
Compute for the financial health ratios of the company for 2019
A.Profitability ratio
a. Return on Assets:
ROA (NI/Total Assets)
ROA (NI/Average Assets)
ROA (EBIT/Total Assets)
ROA (EBIT/Average Assets)
ROE (NI/Capital)
ROE (NI/Average Capital
Question 1
The following table reports IBEX Company's Return on Net Operating Assets (RNOA) ratios
for the years 2020 and 2021, and an industry average RNOA
Ratio
2020
RNOA
17.83%
2021
16.92%
Industry average
19.21%
Required:
(a) Based on the provided financial statements, calculate IBEX Company's RNOA ratio for
the year 2022.
(b) Evaluate the company's profitability performance over 2020-2022 periods and compared
to the industry average.
Problem 1: Viance Queen Company
Required:
Compute for the company’s profitability and operating efficiency ratios for 2019
Compute for the financial health ratios of the company for 2019
A.Profitability ratio
Return on Assets:
ROA (EBIT/Average Assets)
ROE (NI/Capital)
ROE (NI/Average Capital
Chapter 1 Solutions
FUND.ACCT.PRIN.(LOOSELEAF)-W/ACCESS
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