Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress The balance sheet and income statement for Pharoah Supply Company for the fiscal year ended June 30, 2017 is as follows.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Current Attempt in Progress The balance sheet and income statement for Pharoah Supply Company for the fiscal year ended June 30, 2017 is as follows. Pharoah Supply Company Income Statement for the Fiscal Year Ended June 30, 2017($ thousands) Net sales $2,178,900 Cost of goods sold 1,460,400 Selling and administrative expenses 312,400 Nonrecurring expenses 27,400 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $378,700 Depreciation 112,300 Earnings before interest and taxes (EBIT) 266,400 Interest expense 117,650 INTI ta Ann Net sales $2,178,900 Cost of goods sold 1,460,400 Selling and administrative expenses 312,400 Nonrecurring expenses 27,400 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $378,700 Depreciation 112,300 Earnings before interest and taxes (EBIT) 266,400 Interest expense 117,650 Earnings before taxes (EBT) $148,750 Taxes (35%) 52,063 Net income $96,687 Pharoah Supply Company Balance Sheet as of June 30, 2017($ thousands) Assets: Liabilities and Equity: Cash and marketable securities $394,600 Accounts payable $819,000 Accounts receivable 706,000 Notes payable 102,900 Inventory 1,150,500 Accrued income taxes 41,300 Other current assets 41,600 Total current liabilities $963,200 Total current assets $2,292,700 Long-term debt 1,149,400 Net plant and equipment 1,983,500 Total liabilities $2,112,600 Common stock 1,312,600 Retained earnings 851,000 Total common equity $2,163,600 Other current assets 41,600 Total current liabilities $963,200 Total current assets $2,292,700 Long-term debt 1,149,400 Net plant and equipment 1,983,500 Total liabilities $2,112,600 Common stock 1,312,600 Retained earnings 851,000 Total common equity $2,163,600 Total assets $4,276,200 Total liabilities and equity $4,276,200 Use the DuPont equation to calculate the return on equity (ROE). In the process, calculate the following ratios: profit margin, EBIT return on assets, return on assets, equity multiplier, and total asset turnover. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % EBIT ROA % Use the DuPont equation to calculate the return on equity (ROE). In the process, calculate the following ratios: profit margin, EBIT return on assets, return on assets, equity multiplier, and total asset turnover. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % EBIT ROA % Return on assets % Equity multiplier Total asset turnover ROE %

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

Better Than Alpha Three Steps To Capturing Excess Returns In A Changing World

Authors: Christopher M. Schelling

1st Edition

1264257651,126425766X

More Books

Students also viewed these Finance questions