College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 24, Problem 3SEB
(a)
To determine
Compute the profit margin for the period 20-2.
(b)
To determine
Compute the return on assets for the period 20-2.
(c)
To determine
Compute return on common stockholders’ equity for the period 20-2.
(d)
To determine
Compute earnings per share of common stock during the period 20-2.
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Instructions
Using the financial statements and additional information, compute the following ratios for the El
Camino Company for 2021. Show all computations.
Computations
1. Current ratio
2. Return on common stockholders' equity
3.
Price-earnings ratio
4.
Inventory turnover
5. Accounts receivable turnover
6.
Times interest earned
7.
Profit margin
8.
Days in inventory
9.
Payout ratio
10. Return on assets
What is the Days Payables Outstanding? Use the attached financial data to calculate the
ratios. Round to the nearest decimal.
Abercrombie & Fitch Co (ANF)
Financial Data
Revenues
Cost of Sales
Total Operating Expenses
Interest Expense
Income Tax Expense
Diluted Weighted Shares
Outstanding
Cash + Equivalents
Accounts Receivable
Inventories
Total Current Assets
Total Assets
Accounts Payable
Total Current Liabilities
Total Stockholders' Equity
ANF Stock Price = $10.30
Select one
O A. 42.3 days, 37.0 days
OB. 76.1 days, 89.4 days
OC. 89.4 days, 37.0 days
OD. 76.1 days, 97.7 days
2022
$3,659.3
$1,545.9
$2,026.9
$28.5
$37.8
52.8
$257.3
$108.5
$742.0
$1,220.4
$2,694.0
$322.1
$935.5
$656.1
2021
$3,712.8
$1,400.8
$1,968.9
$34.1
$38.9
62.6
$823.1
$69.1
$525.9
$1,507.8
$2,939.5
$374.8
$1,015.2
$826.1
Required:
Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should
be entered as 12.34).)
1. Gross margin percentage.
2. Net profit margin percentage.
3. Return on total assets.
4. Return on equity.
5. Was financial leverage positive or negative for the year?
1. Gross margin percentage
%
2. Net profit margin percentage
%
3. Return on total assets
%
4. Return on equity
%
5. Financial Leverage
Chapter 24 Solutions
College Accounting, Chapters 1-27
Ch. 24 - A comparison of amounts for the same item in the...Ch. 24 - Prob. 2TFCh. 24 - Prob. 3TFCh. 24 - Prob. 4TFCh. 24 - Prob. 5TFCh. 24 - Prob. 1MCCh. 24 - Prob. 2MCCh. 24 - Working capital is a measure of (a) liquidity. (b)...Ch. 24 - Prob. 4MCCh. 24 - Prob. 5MC
Ch. 24 - Prob. 1CECh. 24 - Prob. 2CECh. 24 - Compute the following profitability measures for...Ch. 24 - Prob. 4CECh. 24 - Prob. 5CECh. 24 - Prob. 6CECh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - Prob. 10RQCh. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 1SEACh. 24 - Prob. 2SEACh. 24 - ANALY SIS OF PROFITABILITY Based on the financial...Ch. 24 - ANALY SIS OF LEVERAGE Based on the financial...Ch. 24 - Prob. 5SEACh. 24 - Prob. 6SEACh. 24 - Prob. 7SEACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE...Ch. 24 - Prob. 1SEBCh. 24 - Prob. 2SEBCh. 24 - Prob. 3SEBCh. 24 - Prob. 4SEBCh. 24 - Prob. 5SEBCh. 24 - Prob. 6SEBCh. 24 - Prob. 7SEBCh. 24 - Prob. 8SPBCh. 24 - Prob. 9SPBCh. 24 - RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE...Ch. 24 - Prob. 1MPCh. 24 - This problem challenges you to apply your...
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- The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:arrow_forwardAssuming that total assets were $8,037,000 at the beginning of the current fiscal year, determine the following: When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets e. Return on stockholders' equity f. Return on common stockholders' equity % % %arrow_forwardCompute the following ratios for the most recent two years, show all values in the computations: 1.Current ratio 2.Accounts receivable turnover 3.Debt ratio(TotalLiabilities/Total Assets, as a percentage) 4.Debt-to-equity ratio Based on the results above, what conclusions can you make about the liquidity and solvency of the company?arrow_forward
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