Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,000 Cost of goods sold (6,300 )

Financial statements for Askew Industries for 2021 are shown below (in thousands):

2021 Income Statement
Net sales $ 9,000
Cost of goods sold (6,300 )
Gross profit 2,700
Operating expenses (2,100 )
Interest expense (200 )
Income tax expense (100 )
Net income $ 300

Comparative Balance Sheets
Dec. 31
2021 2020
Assets
Cash $ 600 $ 500
Accounts receivable 600 400
Inventory 800 600
Property, plant, and equipment (net) 2,000 2,100
$ 4,000 $ 3,600
Liabilities and Shareholders Equity
Current liabilities $ 1,100 $ 850
Bonds payable 1,400 1,400
Common stock 600 600
Retained earnings 900 750
$ 4,000 $ 3,600

Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)

What is Asset turnover ratio, Profit margin on salesm Return on assets, return on equity, equity multiplier, Return on equity (using DuPont framework)

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

Corporate Financial Reporting In A Competitive Economy (RLE Accounting)

Authors: Herman W. Bevis

1st Edition

1138966819, 9781138966819

More Books

Students also viewed these Accounting questions

Question

=+c. Now suppose that p 5 .6, which implies that H0 is

Answered: 1 week ago