Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Greenfern Corporation recently filed the following financial statements with the SEC. Greenfern Corporation Income Statement for the Fiscal Year Ended July 31, 2014 Net sales

Greenfern Corporation recently filed the following financial statements with the SEC. Greenfern Corporation Income Statement for the Fiscal Year Ended July 31, 2014 Net sales $86,418 Cost of products sold 61,469 Gross profit $24,949 Selling, general, and administrative expenses 11,013 Depreciation 1,251 Operating income (loss) $12,685 Interest expense 766 Earnings (loss) before income taxes $11,919 Income taxes 4,172 Net earnings (loss) $7,747 Greenfern Corporation Balance Sheet as of July 31, 2014 Assets Liabilities and Stockholders Equity Cash and marketable securities $12,765 Accounts payable $8,931 Accounts receivable 9,256 Accrued and other liabilities 7,928 Inventory 10,500 Taxes payable 6,749 Deferred income taxes 1,036 Debt due within one year 15,089 Prepaid expenses & other receivables 3,308 Total current liabilities $38,697 Total current assets $36,865 Property, plant, and equipment, at cost 73,711 Long-term debt 28,650 Less: Accumulated depreciation 26,191 Deferred income taxes 8,146 Net property, plant, and equipment $47,520 Other non-current liabilities 6,617 Net goodwill and other intangible assets 19,200 Total liabilities $82,110 Common stock 4,327 Retained earnings 17,148 Total stockholders equity 21,475 Total assets $103,585 Total liabilities and stockholders equity $103,585 Use the DuPont identity to calculate the return on equity (ROE). In the process, calculate the following ratios: net profit margin, total asset turnover, equity multiplier, EBIT return on assets (EROA), and return on assets. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % Total asset turnover Equity multiplier EBIT return on assets % Return on assets % Return on equity %

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_2

Step: 3

blur-text-image_3

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

Financial Management For Decision Makers

Authors: Peter Atrill

8th Edition

129213433X, 978-1292134338

More Books

Students also viewed these Finance questions