Question
Given the following data, evaluate the performance and condition of SEF Company by analyzing the firms (a) debt-toequity ratio, (b) profit margin, (c) return on
Given the following data, evaluate the performance and condition of SEF Company by analyzing the firms (a) debt-toequity ratio, (b) profit margin, (c) return on assets, (d) return on equity, and (e) total assets turnover. Use average assets and average equity in computing ROA and ROE. (15 points) SEF Company Statement of Financial Position As of December 31, 2021 Assets: Current Assets 100,000 Non-Current Assets 150,000 Total Assets 250,000 Liabilities and Stockholders' Equity Current Liabilities 100,000 Non-Current Liabilities 75,000 Total Liabilities 175,000 Stockholders' Equity 75,000 Total Liabilities and Stockholders' Equity 250,000 Selected Income Statement data are given below: Net Sales 375,000 Interest Expense 4,000 Net Income 22,500 Selected account balances as of December 31, 2020: Total Assets 200,000 Stockholders' Equity 65,000 Tax rate is 35% Selected Industry Ratios are given below: Debt/equity ratio 1.75 Profit margin 0.12 Return on total assets 0.15 Return on stockholders equity 0.30 Total asset turnover 1.71
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