Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter C, Problem 15QS
Summary Introduction
Concept Introduction:
To calculate:the return on total assets for years 2 and 3 and comment on the efficiency of the company to use its assets.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Compute the following profitability ratios of the company for the
most recent two years, show all values in the computations:
1.Asset Turnover
2.Profit margin ratio(Net Income/Net Sales)
3.Return on total assets (Net Income/Average Total Assets)
4.Return on stockholders’ equity
5.Basic Earnings per share (EPS)
Based on the results above, what conclusions can you make about the company’s overall profitability and efficient use of assets?
The income statement for Forklift Electrical Ltd for two years is attached as a pic.
Determine the operating income (loss) (dollars) for each year.
The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the amounts of the total assets as the investment base, calculate the return on investment.
Was the decision to invest additional assets in the company successful? Explain
compute the dupont framework ratios for company A for year three only. the income statement and balance sheet for company A follows. Compute A) return on equity, B) return on sales Compute A) return on equity, B) return on sales, Asset turnover, D) Asset-to-equity ratio.
Chapter C Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following historical information is from Assisi Community Markets. Calculate the working capital and current ratio for each year. What observations do you make, and what actions might the owner consider taking?arrow_forwardCash Company has income from operations of $51,520, invested assets of $230,000, and sales of $644,000. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin b. Investment turnover c. Return on investmentarrow_forwardHere is the operating data for Yalis Cleaning, Inc.: After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places.arrow_forward
- the following information was drawn from the balance sheets of the kansas and montana companies: current assets: kansas-54,000 montana- 76,000 current liabilites: kansas-27000 montana-30400 a. compute the current ration for each company. b. which company has the greater likelihood of being able to pay its bills? c. assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return on assets ratio?arrow_forwardBarry'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_forwardRequired: (a) You are required to calculate the following ratios:(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.arrow_forward
- Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images) Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.arrow_forwardBarry's BBQ had sales revenue for the year of $400 million and net income of $30 million. Total assets were $50 million at the beginning of the year, and $60 million at the end of the year. Required: Calculate the following ratios: (Do not round intermediate calculations. Round your answers to one decimal place.) 1. Return on assets ratio 2. Profit margin ratio 3. Asset turnover ratio Return on assets Profit margin Asset turnover % timesarrow_forwardDuring the current year, Sokowski Manufacturing earned income of $459,332 from total sales of $6,906,995 and average capital assets of $11,489,420. What is the asset turnover? Round to the nearest to the hundredth, two decimal places and submit the answer in a percentage.arrow_forward
- Identify which of the following six metrics a through f best completes questions 1 through 3 below. a. Days’ sales uncollected d. Return on total assets b. Accounts receivable turnover e. Total asset turnover c. Working capital f. Profit margin 1. Which two ratios are key components in measuring a company’s operating efficiency? Which ratio summarizes these two components? 2. What measure reflects the difference between current assets and current liabilities? 3. Which two short-term liquidity ratios measure how frequently a company collects its accounts?arrow_forwardFrom the following information for BlueInks Corporation, compute the rate of return on assets. Hint: The numerator is income before interest expense and taxes. Net income $40,878 Total assets at beginning of year $250,100 Total assets at end of year $158,680 a. 15% b. 25% c. 16% d. 20%arrow_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
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License