Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bethesda Mining Company reports the following balance sheet information for 2015 and 2016. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016

Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.

BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016
2015 2016 2015 2016
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 31,982 $ 41,399 Accounts payable $ 193,422 $ 201,111
Accounts receivable 58,781 79,139 Notes payable 88,520 140,088
Inventory 131,971 198,632 Total $ 281,942 $ 341,199
Total $ 222,734 $ 319,170 Long-term debt $ 244,000 $ 180,750
Owners equity
Common stock and paid-in surplus $ 211,000 $ 211,000
Fixed assets Accumulated retained earnings 143,239 175,549
Net plant and equipment $ 657,447 $ 589,328 Total $ 354,239 $ 386,549
Total assets $ 880,181 $ 908,498 Total liabilities and owners equity $ 880,181 $ 908,498

Suppose that the Bethesda Mining Company had sales of $2,186,873 and net income of $106,381 for the year ending December 31, 2016. 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.)

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_2

Step: 3

blur-text-image_3

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

Financial Institutions Management A Risk Management Approach

Authors: Anthony Saunders, Marcia Cornett

6th Edition

0077211332, 9780077211332

More Books

Students also viewed these Finance questions

Question

Show enthusiasm for the position (but not too much).

Answered: 1 week ago