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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 | $62,983 | |
Cost of products sold | 44,799 | |
Gross profit | $18,184 | |
Selling, general, and administrative expenses | 8,026 | |
Depreciation | 912 | |
Operating income (loss) | $9,246 | |
Interest expense | 558 | |
Earnings (loss) before income taxes | $8,688 | |
Income taxes | 3,041 | |
Net earnings (loss) | $5,647 |
Greenfern Corporation Balance Sheet as of July 31, 2014 | ||||||
Assets | Liabilities and Stockholders Equity | |||||
Cash and marketable securities | $6,930 | Accounts payable | $4,848 | |||
Accounts receivable | 6,746 | Accrued and other liabilities | 4,304 | |||
Inventory | 7,650 | Taxes payable | 3,664 | |||
Deferred income taxes | 755 | Debt due within one year | 8,191 | |||
Prepaid expenses & other receivables | 2,411 | Total current liabilities | $21,007 | |||
Total current assets | $24,492 | |||||
Property, plant, and equipment, at cost | 53,722 | Long-term debt | 20,880 | |||
Less: Accumulated depreciation | 19,089 | Deferred income taxes | 5,937 | |||
Net property, plant, and equipment | $34,633 | Other non-current liabilities | 4,823 | |||
Net goodwill and other intangible assets | 13,990 | Total liabilities | $52,647 | |||
Common stock | 3,154 | |||||
Retained earnings | 17,314 | |||||
Total stockholders equity | 20,468 | |||||
Total assets | $73,115 | Total liabilities and stockholders equity | $73,115 |
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 | % |
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