Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial data for Stirling, Inc., for last year are as follows: Stirling, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 154,000 $ 151,000

Financial data for Stirling, Inc., for last year are as follows:

Stirling, Inc. Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $ 154,000 $ 151,000
Accounts receivable 379,000 523,000
Inventory 623,000 538,000
Plant and equipment, net 964,000 948,000
Investment in Brier Company 450,000 474,000
Land (undeveloped) 276,000 280,000

Total assets $ 2,846,000 $ 2,914,000

Liabilities and Stockholders' Equity
Accounts payable $ 426,000 $ 384,000
Long-term debt 1,079,000 1,079,000
Stockholders' equity 1,341,000 1,451,000

Total liabilities and stockholders' equity $ 2,846,000 $ 2,914,000

Stirling, Inc. Income Statement
Sales $ 6,004,000
Operating expenses 5,055,520

Net operating income 948,480
Interest and taxes:
Interest expense $ 175,000
Tax expense 252,000 427,000

Net income $ 521,480

The company paid dividends of $276,480 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the stock of another company.

Required:
1.

Compute the companys margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations. Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

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

Life Audit Workbook Meant For More

Authors: Agnese Iskrova

1st Edition

1716274958, 978-1716274954

More Books

Students also viewed these Accounting questions

Question

Identify cultural barriers to communication.

Answered: 1 week ago