Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,140 Less: Depreciation 420 Earnings before interest and

Galaxy United, Inc. 2009 Income Statement ($ in millions)
Net sales $8,500
Less: Cost of goods sold 7,140
Less: Depreciation

420

Earnings before interest and taxes 940
Less: Interest paid

74

Taxable Income 866
Less: Taxes

303

Net income

$ 563

Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in millions)

2008

2009

2008

2009

Cash $ 110 $ 150 Accounts payable $1,120 $1,140
Accounts rec. 940 780 Long-term debt 890 1,178
Inventory

1,490

1,520

Common stock $3,180 $2,980
Sub-total $2,540 $2,450 Retained earnings

500

762

Net fixed assets

3,150

3,610

Total assets

$5,690

$6,060

Total liab. & equity

$5,690

$6,060

What is the return on equity for 2009?

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

Handbook Of The Economics Of Finance Corporate Finance Volume 1A

Authors: George M. Constantinides, M. Harris, Rene M. Stulz

1st Edition

0444513620, 978-0444513625

More Books

Students also viewed these Finance questions

Question

e. What difficulties did they encounter?

Answered: 1 week ago