Assignment2 1) Gordon Wear has $800,000 in assets and $200,000 of total debt. It reports the...

Transcribed Image Text:

Assignment2 1) Gordon Wear has $800,000 in assets and $200,000 of total debt. It reports the net income from projects is $100,000 a) What is its ROA b) What is the return on shareholder's equity c) If the business has an asset turnover ratio of 2.75 times, what is the profit margin? 2) please re-arrange the financial statement in right format and calculate all the ratios mentioned in the lecture for following company Sneider Corp's Balance Sheet Cash Notes Payable-short term Marketable Securities 31-Dec-19 50,000 Income Statement 31-Dec-19 70,000 Project Revenue 20,000 long term Investment 60,000 COGS Accounts Receivable 160,000 Accumulated Depreciation-Plant and equipment 190,000 Gross Profit 1,980,000 1,280,000 700,000 Inventory 200,000 Accounts Payable 90,000 Operating exp Plant and equipment 600,000 Admin & Selling Exp 475,000 Shareholder's Capital (common share and preferred shares) 370,000 Net profit before Interest and tax 225,000 Long-term loan payable---16 years total 160,000 Long-term loan payable-current portion 160,000/16 year 10,000 Interest Expense 25,000 Retained Earnings 210,000 Earning before tax 200,000 Required: 1) re-arrange the accounts following the right balance sheet format 2) Calculate the 10 ratios based on the lecture formulas Taxes 80,000 Earning after tax 120,000 Assignment2 1) Gordon Wear has $800,000 in assets and $200,000 of total debt. It reports the net income from projects is $100,000 a) What is its ROA b) What is the return on shareholder's equity c) If the business has an asset turnover ratio of 2.75 times, what is the profit margin? 2) please re-arrange the financial statement in right format and calculate all the ratios mentioned in the lecture for following company Sneider Corp's Balance Sheet Cash Notes Payable-short term Marketable Securities 31-Dec-19 50,000 Income Statement 31-Dec-19 70,000 Project Revenue 20,000 long term Investment 60,000 COGS Accounts Receivable 160,000 Accumulated Depreciation-Plant and equipment 190,000 Gross Profit 1,980,000 1,280,000 700,000 Inventory 200,000 Accounts Payable 90,000 Operating exp Plant and equipment 600,000 Admin & Selling Exp 475,000 Shareholder's Capital (common share and preferred shares) 370,000 Net profit before Interest and tax 225,000 Long-term loan payable---16 years total 160,000 Long-term loan payable-current portion 160,000/16 year 10,000 Interest Expense 25,000 Retained Earnings 210,000 Earning before tax 200,000 Required: 1) re-arrange the accounts following the right balance sheet format 2) Calculate the 10 ratios based on the lecture formulas Taxes 80,000 Earning after tax 120,000