{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-29T18:03:14-04:00", "answer_date": "2024-05-29 18:03:14", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1897763", "url": "\/study-help\/questions\/3-profitability-ratios-profitability-ratios-help-in-the-analysis-of-1897763", "question_creation_date_js": "2024-05-29T18:03:14-04:00", "question_creation_date": "May 29, 2024 06:03 PM", "meta_title": "[Solved] 3. Profitability ratios Profitability rat | SolutionInn", "meta_description": "Answer of - 3. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset ma | SolutionInn", "meta_keywords": "3,profitability,ratios,help,analysis,combined,impact,liquidity,asset,management,debt,operating", "question_title_h1": " 3. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on", "question_title": " 3. Profitability ratios Profitability ratios help in the analysis of the", "question_title_for_js_snippet": "3 Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm Your boss has asked you to calculate the profitability ratios of Diusitech Inc and make comments on its second year performance as compared with its first year performance The following shows Diusitech Inc 's income statement for the last two years The company had assets of $8,225 million in the first year and $13,157 million in the second year Common equity was equal to $4,375 million in the first year, and the company distributed 100 of its earnings out as dividends during the first and the second years In addition, the firm did not issue new stock during either year Diusitech Inc Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 4,445 3,500 Operating costs except depreciation and amortization 1,365 1 266 Depreciation and amortization 222 140 Total Operating Costs 1,587 1,408 Operating Income (or EBIT) 2,058 2,092 Less Interest 386 167 Earnings before taxes (EBT) 2,472 1,925 Less Taxes (25 ) 618 481 Net Income 1,854 1,444", "question_description": "\"image\"image", "transcribed_text": "3. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $8,225 million in the first year and $13,157 million in the second year. Common equity was equal to $4,375 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 4,445 3,500 Operating costs except depreciation and amortization 1,365 1.266 Depreciation and amortization 222 140 Total Operating Costs 1,587 1,408 Operating Income (or EBIT) 2,058 2,092 Less: Interest 386 167 Earnings before taxes (EBT) 2,472 1,925 Less: Taxes (25%) 618 481 Net Income 1,854 1,444", "related_book": { "title": "Construction accounting and financial management", "isbn": "135017114, 978-0135017111", "edition": "2nd Edition", "authors": "Steven j. Peterson", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/246.jpg", "uri": "\/textbooks\/construction-accounting-and-financial-management-2nd-edition-246", "see_more_uri": "" }, "free_related_book": { "isbn": "0471214590", "uri": "\/textbooks\/perfect-package-vallerand-drug-guide-18e-and-van-leeuwen-comp-man-lab-and-dx-tests-10e-and-tabers-med-dict-24e-4th-edition-978-1719648943-269925", "name": "Fundamentals Of Structural Integrity Damage Tolerant Design And Nondestructive Evaluation", "edition": "1st Edition" }, "question_posted": "2024-05-29 18:03:14", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-August-28", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/college-algebra-graphs-and-models\/what-must-be-done-to-a-functions-equation-so-that-its-graph-is", "description": "What must be done to a functions equation so that its graph is reflected about the x-axis?", "stars": 3 }, { "url": "\/reconsider-the-statetransition-diagram-in-figure-describe-in-words-or", "description": "Reconsider the state-transition diagram in Figure. 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