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 $ 60,538 $ 76,386 Accounts payable $ 187,922 $ 195,611
Accounts receivable 64,281 84,639 Notes payable 83,020 134,588
Inventory 119,029 184,177 Total $ 270,942 $ 330,199
Total $ 243,848 $ 345,202 Long-term debt $ 233,000 $ 169,750
Owners equity
Common stock and paid-in surplus $ 222,000 $ 222,000
Fixed assets Accumulated retained earnings 176,453 213,131
Net plant and equipment $ 658,547 $ 589,878 Total $ 398,453 $ 435,131
Total assets $ 902,395 $ 935,080 Total liabilities and owners equity $ 902,395 $ 935,080

Suppose that the Bethesda Mining Company had sales of $2,296,873 and net income of $95,381 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

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

Investments

Authors: Zvi Bodie, Alan J. Marcus, Alex Kane

6th Edition

0072861789, 9780072861785

More Books

Students also viewed these Finance questions