Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Beginning Balance Ending Balance Assets Cash $

Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year.

Beginning Balance Ending Balance
Assets
Cash $ 62,800 $ 150,000
Accounts receivable 160,000 180,000
Inventory 230,000 240,000
Property, plant & equipment (net) 833,000 793,000
Other assets 37,000 37,000
Total assets $ 1,322,800 $ 1,400,000
Liabilities & Stockholders Equity
Accounts payable $ 70,000 $ 80,000
Bonds payable 550,000 550,000
Common stock 410,000 410,000
Retained earnings 292,800 360,000
Total liabilities & stockholders equity $ 1,322,800 $ 1,400,000

This Year
Sales $ 2,500,000
Variable expenses:
Cost of goods sold 1,600,000
Variable selling expense 240,000
Total variable expenses 1,840,000
Contribution margin 660,000
Fixed expenses:
Fixed selling expenses 220,000
Fixed administrative expenses 300,000
Total fixed expenses 520,000
Net operating income 140,000
Interest expense (8%) 44,000
Net income before tax 96,000
Tax expense (30%) 28,800
Net income $ 67,200

a. What is this alternatives margin, turnover, and return on investment (ROI)?

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

Modern Analytical Auditing Practical Guidance For Auditors And Accountants

Authors: Thomas Mckee

1st Edition

0899303544, 978-0899303543

More Books

Students also viewed these Accounting questions

Question

2. How do business reports differ from business letters?

Answered: 1 week ago