Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If Garson Rooters Inc. has an equity multiplier of 1.45, total asset turnover of 1.80, and a profit margin of 5.5%, what is its ROE?

image text in transcribed

image text in transcribed

image text in transcribed

If Garson Rooters Inc. has an equity multiplier of 1.45, total asset turnover of 1.80, and a profit margin of 5.5%, what is its ROE? (Round the final answer to 2 decimal places.) ROE % Some recent financial statements for Earl Grey Golf Corp. follow Assets 2018 Current assets Cash Accounts receivable Inventory Total $ 27,429 10, 880 EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position Liabilities and Owners' Equity 2017 2018 2017 Current liabilities $ 24,046 $ 24, 255 Accounts payable $ 23, 184 12,448 15,235 Notes payable 12,000 25,392 27,155 Other 11,571 $ 61,886 $ 66,645 Total $ 46,755 Long-term debt $ 88,888 Owners' equity $324,695 $365,734 Common stock and paid-in surplus $ 40,000 Retained earnings 219,826 Total $259,826 $386,581 $432,379 Total liabilities and owners' equity $386,581 15,553 $ 53,773 $ 95, ees Fixed assets Net plant and equipment $ 40,000 243, 606 $283, 686 $432,379 Total assets Sales Cost of goods sold Depreciation Earnings before interest and tax Interest paid Taxable income Taxes (35%) Net income Dividends Additions to retained earnings $366,996 253,122 32,220 $ 81,654 14,300 $ 67,354 23,574 $ 43, 780 $ 20,000 23, 780 The company's profit margin is percent (Use year-end figures rather than average values where appropriate. Do not include the percent sign (%). Round the final answer to 2 decimal places.) Total asset turnover is times. (Round the final answer to 3 decimal places.) Equity multiplier is (Round the final answer to 2 decimal places.) Using the Du Pont Identity, the company's ROE IS percent. (Do not include the percent sian (%). Round the final answer to 2 decimal places.)

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

More Books

Students also viewed these Accounting questions

Question

Ty e2y Evaluate the integral dy

Answered: 1 week ago