ACC231 Uses of Accounting Information I-S (1) Homework: HW #11 (Financial Statement Analysis) 9 of 10 (9 completo) Score: 0 of 1 pt S12-9 (similar to) The financial statements of Isaacson Corporation follow: (Click the icon to view the assets section of the balance sheet.) (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) Calculate these profitab a. Rate of return on b. Asset turnover rat c. Rate of return on d. Leverage (equity e. Rate of return on f. Is Isaacson's prof (Click the icon to view the income statement.) a. Compute the rate of return on sales for 2018. (Enter currency amounts in millions as given in the question. Ignore interest expense in you X.X%) Net sales Rate of return on sales % (9 complete) Calculate these profitability measures for 2018. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Isaacson's profitability strong, medium, or weak? interest expense in yoy Data Table on sales 2018 % (Dollar amounts in millions) h Assal turnover ratio i Data Table - (Dollar amounts in millions) 2018 2017 Amount Percentage Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 950 $ 870 $ 80 9.2 % Income tax payable 40 70 (30) (42.9) Short-term debt 130 105 25 23.8 Other 75 80 (5) (6.3) Total current liabilities 1,195 1.125 70 6.2 Long-term debt 4,556 3,122 1,434 45.9 Other liabilities 1,120 1,020 100 9.8 Total liabilities 6,871 5,267 1,604 30.5 Stockholders' equity: Common stock 2 2 2 - 1 Retained earnings 1,516 1,600 (84) (5.3) (130) (190) 60 Accumulated other comprehensive (loss) 31.6 1,388 1,412 (24) Total stockholders' equity (1.7) $ 8,259 $ 6,679 $ 1,580 Total liabilities and stockholders' equity 23.7 % DA Isaacson Corporation Balance Sheet (Adpated) December 31, 2018 and 2017 Increase (Decrease) (Dollar amounts in millions) 2018 2017 Amount Percentage Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 950 $ 870 $ 80 9.2 % Income tax payable 40 70 (30) (42.9) Short-term debt 130 105 25 23.8 75 80 Other (5) (6.3) 1,195 1.125 70 Total current liabilities 6.2 4,556 Long-term debt 3,122 1,434 45.9 1,120 1,020 100 9.8 Other liabilities 6,871 5,267 1,604 30.5 Total liabilities Stockholders' equity: 2 N Common stock i Data Table - X equity. or weak? Isaacson Corporation Statements of Income (Adapted) zero balances. Round Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 2017 Net revenues $ 9,310 $ 9,150 Cost of goods sold 4,550 4,800 Gross profit 4,760 4,350 General and administrative expenses 3,200 3,400 Income from operations 1,560 950 Interest expense, net 195 150 Income before income taxes 1,365 800 434 Provision for income taxes 270 $ 931 $ 530 Net income Print Done