Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fiddler Computer Corp., a technology support company providing security for small businesses, reported these summarized figures in millions): B (Click the icon to view the
Fiddler Computer Corp., a technology support company providing security for small businesses, reported these summarized figures in millions): B (Click the icon to view the income statement.) E Click the icon to view the balance sheet.) Income Statement 1 1. Compute these profitability measures for 2020 a. Return on sales. b. Return on assets, interest expense for 2020 was $0.7 million. c. Return on common shareholders' equity 2. Are these rates of return strong or weak? Fiddler Computer Corp. 1. a. Return on sales is %. (Round your answer to one decimal place.) Income Statement For the Year Ended December 31, 2020 b. Return on assets is %. (Round your answer to one decimal place.) Net sales $ 65.5 c. Return on common shareholders' equity is % (Round your answer to one decimal place.) Cost of goods sold 43.8 2. Are these rates of return strong or weak? Interest expense 0.7 All other expenses 15.8 These rates of return are Net income $ 5.2 Print Done Enter your answer in each of the answer boxes Balance Sheet - Fiddler Computer Corp. Balance Sheet December 31, 2020 Assets 2020 2019 Liabilities and Equity 2020 2019 Cash GA 3.8 $ 2.4 Total current liabilities $ 9.4|$ 72 Short-term investments 1.6 1.9 Long-term liabilities 10.0 8.3 Accounts receivable 1.5 0.6. Total liabilities 19.4 15.5 Inventory 10.0 Other current assets 0.8 0.6 Common shares 6.8 Total current assets 17.7 14.3 Retained earnings 16.9 15.2 All other assets 25.4 21.8 Total equity 23.7 20.6 Total assets $ 43.1 $ 36.1 Total liabilities and equity $ 43.1 $ 36.1 Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started