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Posted on Jun 14, 2024

1. Required: (a) Firm D has net income of $109,500, sales of $2,342,000, and average total assets of $1,407,000. Calculate the firm's margin, turnover, and

1. Required: (a) Firm D has net income of $109,500, sales of $2,342,000, and average total assets of $1,407,000. Calculate the firm's margin, turnover, and ROI. (Omit the "%" sign in your response.) Margin % Turnover ROI % (b) Firm E has net income of $162,000, sales of $2,620,000, and ROI of 13%. Calculate the firm's turnover and average total assets. (Omit the "$" sign in your response.) Turnover $ Average total assets (c) Firm F has ROI of 12.6%, average total assets of $1,754,159, and turnover of 1.3. Calculate the firm's sales, margin, and net income. (Round your answers to the nearest whole numbers. Omit the "$" and "%" signs in your response.) Net income $ Sales $ Margin % 2. For the year ended December 31, 2010 ,Carpenter Associates, earned an ROI of 11%. Sales for the year were $17 million, and average asset turnover was 2.4. Average owners' equity was $3.3 million. Required: (a) Calculate Carpenter Associates's margin and net income. (Round your margin percentage to 1 decimal place and use the same for the calculation of net income. Enter your answer in dollars, not millions of dollars. Omit the "$" and "%" signs in your response.) Margin % Net income $ (b) Calculate Carpenter Associates's return on equity. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) ROE % 3.Pacific Industries, had current liabilities at November 30 of $68,900. The firm's current ratio at that date was 1.7. Required: (a) Calculate the firm's current assets and working capital at November 30. (Omit the "$" sign in your response.) Current assets Working capital $ $ (b) Assume that management paid $17,500 of accounts payable on November 29. Calculate the current ratio and working capital at November 30 as if the November 29 payment had not been made. (Round your current ratio answer to two decimal places. Omit the "$" sign in your response.) Working capital Current ratio $ If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically Question :1 1 Required: (a) Firm D has net income of $109,500, sales of $2,342,000, and average total assets of $1,407,000. Calculate the firm's margin, turnover, and ROI. (Omit the "%" sign in your response.) Margin 4.7% Turnover 1.7 ROI 7.8% Solution: Computation of the Ratios Profit Margin Net Profit Sales Profit Margin Profit Margin Asset Turn over Ratio Asset Turn over Ratio Asset Turn over Ratio 109500 2342000 4.68% Total Sales Avg Total Assets 2342000 1407000 1.66 ROI Net Profit Avg Total Assets ROI 109500 1407000 ROI 7.78% (b) Firm E has net income of $162,000, sales of $2,620,000, and ROI of 13%. Calculate the firm's turnover and average total assets. (Omit the "$" sign in your response.) Turnover 2.10 Average total assets $1,246,154 Solution: Computation of the Ratios Avg Total Assets Net Profit ROI Avg Total Assets Avg Total Assets Asset Turn over Ratio Asset Turn over Ratio Asset Turn over Ratio 162000 13% $1,246,154 Total Sales Avg Total Assets $2,620,000 $1,246,154 2.1 (c) Firm F has ROI of 12.6%, average total assets of $1,754,159, and turnover of 1.3. Calculate the firm's sales, margin, and net income. (Round your answers to the nearest whole numbers. Omit the "$" and "%" signs in your response.) Net income $221,024 Sales $2,280,407 Margin 9.7% Solution: Computation of the Ratios Net Income Average Total Assets*ROI Net Income Net Income Asset Turn over Ratio 1.3 Total Sales 1754159*0.126 $221,024 Total Sales Avg Total Assets Total Sales 1754159 $2,280,407 Profit Margin Net Profit Sales Profit Margin $221,024 $2,280,407 Profit Margin 9.69% 2. For the year ended December 31, 2010 ,Carpenter Associates, earned an ROI of 11%. Sales for the year were $17 million, and average asset turnover was 2.4. Average owners' equity was $3.3 million. Required: (a) Calculate Carpenter Associates's margin and net income. (Round your margin percentage to 1 decimal place and use the same for the calculation of net income. Enter your answer in dollars, not millions of dollars. Omit the "$" and "%" signs in your response.) Margin % 4.6% Net income $ $779,167 Solution: Computation of the Ratios Asset Turn over Ratio Total Sales Avg Total Assets 2.4 Avg Total Assets 17000000 Avg Total Assets $7,083,333 ROI Net income Avg Total Assets 0.11 Net income $7,083,333 Net income $779,167 Profit Margin Net Profit Sales Profit Margin $779,167 17000000 Profit Margin 4.6% (b) Calculate Carpenter Associates's return on equity. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) ROE % 23.6% Solution: Computation of the Ratios ROE Net Income Average owners' equity ROE $779,167 $3,300,000 ROE 23.6% 3.Pacific Industries, had current liabilities at November 30 of $68,900. The firm's current ratio at that date was 1.7. Required: (a) Calculate the firm's current assets and working capital at November 30. (Omit the "$" sign in your response.) Current assets $117,130 Working capital $48,230 Solution: Computation of the following Current Ratio = Current Assets Current Liabilities 1.7 Current Assets Working Capital = Working Capital = Current Assets 68900 $117,130 Current Assets - Current Liabilities $48,230 (b) Assume that management paid $17,500 of accounts payable on November 29. Calculate the current ratio and working capital at November 30 as if the November 29 payment had not been made. (Round your current ratio answer to two decimal places. Omit the "$" sign in your response.) Working capital $48,230 Current ratio 1.94 Current Ratio = Current Assets Current Liabilities Current Ratio = Current Ratio = Working Capital = Working Capital = $99,630 51400 1.94 Current Assets - Current Liabilities $48,230 If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically Question :1 1 Required: (a) Firm D has net income of $109,500, sales of $2,342,000, and average total assets of $1,407,000. Calculate the firm's margin, turnover, and ROI. (Omit the "%" sign in your response.) Margin 4.7% Turnover 1.7 ROI 7.8% Solution: Computation of the Ratios Profit Margin Net Profit Sales Profit Margin Profit Margin Asset Turn over Ratio Asset Turn over Ratio Asset Turn over Ratio 109500 2342000 4.68% Total Sales Avg Total Assets 2342000 1407000 1.66 ROI Net Profit Avg Total Assets ROI 109500 1407000 ROI 7.78% (b) Firm E has net income of $162,000, sales of $2,620,000, and ROI of 13%. Calculate the firm's turnover and average total assets. (Omit the "$" sign in your response.) Turnover 2.10 Average total assets $1,246,154 Solution: Computation of the Ratios Avg Total Assets Net Profit ROI Avg Total Assets Avg Total Assets Asset Turn over Ratio Asset Turn over Ratio Asset Turn over Ratio 162000 13% $1,246,154 Total Sales Avg Total Assets $2,620,000 $1,246,154 2.1 (c) Firm F has ROI of 12.6%, average total assets of $1,754,159, and turnover of 1.3. Calculate the firm's sales, margin, and net income. (Round your answers to the nearest whole numbers. Omit the "$" and "%" signs in your response.) Net income $221,024 Sales $2,280,407 Margin 9.7% Solution: Computation of the Ratios Net Income Average Total Assets*ROI Net Income Net Income Asset Turn over Ratio 1.3 Total Sales 1754159*0.126 $221,024 Total Sales Avg Total Assets Total Sales 1754159 $2,280,407 Profit Margin Net Profit Sales Profit Margin $221,024 $2,280,407 Profit Margin 9.69% 2. For the year ended December 31, 2010 ,Carpenter Associates, earned an ROI of 11%. Sales for the year were $17 million, and average asset turnover was 2.4. Average owners' equity was $3.3 million. Required: (a) Calculate Carpenter Associates's margin and net income. (Round your margin percentage to 1 decimal place and use the same for the calculation of net income. Enter your answer in dollars, not millions of dollars. Omit the "$" and "%" signs in your response.) Margin % 4.6% Net income $ $779,167 Solution: Computation of the Ratios Asset Turn over Ratio Total Sales Avg Total Assets 2.4 Avg Total Assets 17000000 Avg Total Assets $7,083,333 ROI Net income Avg Total Assets 0.11 Net income $7,083,333 Net income $779,167 Profit Margin Net Profit Sales Profit Margin $779,167 17000000 Profit Margin 4.6% (b) Calculate Carpenter Associates's return on equity. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) ROE % 23.6% Solution: Computation of the Ratios ROE Net Income Average owners' equity ROE $779,167 $3,300,000 ROE 23.6% 3.Pacific Industries, had current liabilities at November 30 of $68,900. The firm's current ratio at that date was 1.7. Required: (a) Calculate the firm's current assets and working capital at November 30. (Omit the "$" sign in your response.) Current assets $117,130 Working capital $48,230 Solution: Computation of the following Current Ratio = Current Assets Current Liabilities 1.7 Current Assets Working Capital = Working Capital = Current Assets 68900 $117,130 Current Assets - Current Liabilities $48,230 (b) Assume that management paid $17,500 of accounts payable on November 29. Calculate the current ratio and working capital at November 30 as if the November 29 payment had not been made. (Round your current ratio answer to two decimal places. Omit the "$" sign in your response.) Working capital $48,230 Current ratio 1.94 Current Ratio = Current Assets Current Liabilities Current Ratio = Current Ratio = Working Capital = Working Capital = $99,630 51400 1.94 Current Assets - Current Liabilities $48,230