Question
Given the following facts, what is the impact on the return on assets/investment ratio if a building was purchased for 5000 by borrowing all of
Given the following facts, what is the impact on the return on assets/investment ratio if a building was purchased for 5000 by borrowing all of the amount from the bank?
Sales | 82,059 |
| |
Cost of products sold | 27,556 | ||
Gross Profit | 54,503 | ||
Selling, marketing and administrative expenses | 22,178 | ||
Research and development expense | 12,245 | ||
Other expense | 2,486 | ||
Restructuring | 266 | ||
Operating Income before taxes | $ 17,328 |
| |
Income Tax Expense | 2,209 | ||
Net Income | 15,119 | ||
|
|
|
|
Assets Current YR Prior YR
Total current assets | 45,274 | 46,033 |
|
Total assets | $ 157,728 | 152,954 |
|
Accounts receivable less allowances $226 (prior, $248) | 14,481 | 14,098 |
|
Inventories | 9,020 | 8,599 |
|
options:
Increase | |
Decrease | |
Stay the same | |
Can not calculate with the numbers given |
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