Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bethesda Mining Company reports the following balance sheet information for 2013 and 2014. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2013 and 2014
Bethesda Mining Company reports the following balance sheet information for 2013 and 2014. |
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2013 and 2014 | |||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||
Assets | Liabilities and Owners Equity | ||||||||||||
Current assets | Current liabilities | ||||||||||||
Cash | $ | 52,990 | $ | 67,084 | Accounts payable | $ | 189,422 | $ | 197,111 | ||||
Accounts receivable | 62,781 | 83,139 | Notes payable | 84,520 | 136,088 | ||||||||
Inventory | 122,559 | 188,119 | |||||||||||
Total | $ | 273,942 | $ | 333,199 | |||||||||
Total | $ | 238,330 | $ | 338,342 | |||||||||
Long-term debt | $ | 236,000 | $ | 172,750 | |||||||||
Owners equity | |||||||||||||
Common stock and paid-in surplus | $ | 219,000 | $ | 219,000 | |||||||||
Accumulated retained earnings | 167,635 | 203,121 | |||||||||||
Fixed assets | |||||||||||||
Net plant and equipment | $ | 658,247 | $ | 589,728 | Total | $ | 386,635 | $ | 422,121 | ||||
Total assets | $ | 896,577 | $ | 928,070 | Total liabilities and owners equity | $ | 896,577 | $ | 928,070 | ||||
Suppose that the Bethesda Mining Company had sales of $2,266,873 and net income of $98,381 for the year ending December 31, 2014. |
Required: |
Calculate ROE using the Du Pont identity. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16). Enter the profit margin and return on equity as percents.) |
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started