EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 2, Problem 8PROB
Summary Introduction
To determine: Sales Revenues, Net Income and Profit Margin
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At the end of the year, Universal Utilities (UU) had $1.5 million in total assets. Its total assets turnover was 1.4, and its return on assets (ROA) was 7.14 percent. What were UU's sales revenues and net profit margin?
At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets.
(a)If WFL’s total assets turnover was 2.0, what were its sales revenues?
(b)If WFL’s return on assets was 6 percent, what were its net income and net profit margin?
Lions Corp's sales last year were $27,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO)?
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- The balance sheet of ATLF, Inc. reports total assets of $950,000 and $1,050,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively. What is ATLF's profit margin? Select one: a. 8% b. 15% c. 10% d. 80% e. 12.5%arrow_forwardX-1 Corp's total assets at the end of last year were $440,000 and its EBIT was $55,000. What was its basic earning power (BEP) ratio?arrow_forwardArshadi Corp.'s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)?arrow_forward
- Chambliss Corp.'s total assets at the end of last year were $265,000 and its EBIT was 62,500. What was its basic earning power (BEP)? Select the correct answer. a. 22.88% b. 24.28% c. 23.58% d. 24.98% e. 22.18%arrow_forwardLast year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and sales of $15 million. Calculate Hassan's Madhatter's total assets. (Enter your answer in dollars, rounded to the nearest dollar.) Total assetsarrow_forwardAccordingly, 15% of rent, depreciation, and utility expenses pertain to the sales office while the rest pertains to the corporate office. Questions: How much is the net sales for the year? How much is the cost of sales for the year? How much is the gross profit for the year? How much is the net income for the year? Prepare a statement of comprehensive income. Prepare a financial statement.arrow_forward
- Rappaport Corp.'s sales last year were $375,000, and its net income after taxes was $23,000. What was its profit margin on sales? Select the correct answer. a. 6.19 % b. 6.21 % c. 6.17 % d. 6.13 % e. 6.15 %arrow_forwardRappaport Corp.'s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? A 6.49% B 6.83% C 7.19% D 7.55%arrow_forward(Profitability analysis) Last year Triangular Resources earned $4.6 million in net operating income and had an operating profit margin of 19.7 percent. If the firm's total asset turnover ratio was 1.56, what was the firm's investment in total assets? The company's total assets are $ million. (Round to one decimal place.)arrow_forward
- Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and sales of $15 million. Calculate Hassan's Madhatter's total assets. (Enter your answer in dollers, rounded to the nearest dollar.) Total assetsarrow_forwardSwiss Group reports net income of $34,000 for the year. At the beginning of the year, Swiss Group had $165,000 in assets. By the end of the year, assets had grown to $215,000. 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?arrow_forwardFlitter reported net income of $23,500 for the past year. At the beginning of the year the company had $212,000 in assets and $62,000 in liabilities. By year end, assets had increased to $312,000 and liabilities were $87,000. Calculate its return on assets: Multiple Choice 11.1%. 9.0%. 7.5%. 35.7%. 26.0%.arrow_forward
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