Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019
2018 2019 2018 2019
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 63,014 $ 79,447 Accounts payable $ 187,422 $ 195,111
Accounts receivable 64,781 85,139 Notes payable 82,520 134,088
Inventory 117,852 182,862

Total $ 269,942 $ 329,199
Total $ 245,647 $ 347,448

Long-term debt $ 232,000 $ 168,750
Owners equity
Common stock and paid-in surplus $ 223,000 $ 223,000
Accumulated retained earnings 179,352 216,427
Fixed assets

Net plant and equipment $ 658,647 $ 589,928 Total $ 402,352 $ 439,427

Total assets $ 904,294 $ 937,376 Total liabilities and owners equity $ 904,294 $ 937,376

Suppose that the Bethesda Mining Company had sales of $2,306,873 and net income of $94,381 for the year ending December 31, 2019. Calculate ROE using the DuPont identity. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin and return on equity as a percent.)

Find:

Profit Margin %

Total asset turnover times

Equity Multiplier times

Return on equity %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Finance At Risk

Authors: S. Sen

1st Edition

1349420492, 978-1349420490

More Books

Students also viewed these Finance questions

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago