Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data table Data table Requirements Calculate these profitability measures for 2021. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Data table Data table Requirements Calculate these profitability measures for 2021. Show each computation. a. Rate of return on sales. b. Asset turnover ratio. c. Rate of return on total assets. d. Leverage (equity multiplier) ratio. e. Rate of return on common stockholders' equity. f. Is Horner's profitability strong, medium, or weak? The financial statements of Homer Corporation folow: (Cick the icont to viow the assets section of the balance sheet) (Civk the kcon to view me fiabilities and atockholders' equity soctions of the balanco sheot) (Click the icon to view the income staternom.) Read the tequiments: a. Compute the rate of retum on sales for 2021. (Enter currency amounts in millons as given in the question. Ignore interest expente in your analyis and entar " O+ for any zero balances. Round your answer to the nearest tenth of a percent, X%.) Data table Horner Corporation Balance Sheet (Adpated) December 31, 2021 and 2020 \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ (Dollar amounts in millions) } & \multirow{2}{*}{\multicolumn{2}{|c|}{2021}} & \multirow[b]{2}{*}{2020} & \multicolumn{2}{|c|}{ Increase (Decrease) } \\ \hline & & & & Amount & Percentage \\ \hline \multicolumn{6}{|c|}{ Liabilities and Stockholders' Equity } \\ \hline \multicolumn{6}{|l|}{ Current liabilities: } \\ \hline Accounts payable & $ & 980 \$ & 840 & 140 & 16.7% \\ \hline Income tax payable & & 46 & 68 & (22) & (32.4) \\ \hline Short-term debt & & 195 & 180 & 15 & 8.3 \\ \hline Other & & 69 & 74 & (5) & (6.8) \\ \hline Total current liabilities & & 1,290 & 1,162 & 128 & 11.0 \\ \hline Long-term debt & & 3,320 & 2,800 & 520 & 18.6 \\ \hline Other liabilities & & 1,160 & 1,060 & 100 & 9.4 \\ \hline Total liabilities & & 5,770 & 5,022 & 748 & 14.9 \\ \hline \multicolumn{6}{|l|}{ Stockholders' equity: } \\ \hline Common stock & & 2 & 2 & - & - \\ \hline Retained earnings & & 1,466 & 1,680 & (214) & (12.7) \\ \hline \end{tabular} Print Done Data table

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

How To Do Energy Audit Of Your Home The Complete WorkBook For Young Mind

Authors: Pranab Nath

1st Edition

B0C2S47K82, 979-8391164623

More Books

Students also viewed these Accounting questions