Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nester Computer Corp., a technology support company providing security for small businesses, reported these summarized figures (in millions): E: (Click the icon to view the
Nester Computer Corp., a technology support company providing security for small businesses, reported these summarized figures (in millions): E: (Click the icon to view the income statement.) : (Click the icon to view the balance sheet.) 1. Compute these profitability measures for 2020: a. Return on sales. b. Return on assets, interest expense for 2020 was $0.4 million. c. Return on common shareholders' equity. 2. Are these rates of return strong or weak? 1. a. Return on sales is %. (Round your answer to one decimal place.) b. Return on assets is %. (Round your answer to one decimal place.) c. Return on common shareholders' equity is %. (Round your answer to one decimal place.) 2. Are these rates of return strong or weak? These rates of return are i Income Statement - 67.0 Nester Computer Corp. Income Statement For the Year Ended December 31, 2020 Net sales $ Cost of goods sold Interest expense All other expenses $ Net income 43.2 0.4 15.2 8.2 Print Done Balance Sheet Assets 2020 2019 $ $ 9.6$ 9.8 8.2 9.3 Nester Computer Corp. Balance Sheet December 31, 2020 2020 2019 Liabilities and Equity $ 4.0 $ 1.8 Total current liabilities 1.0 1.5 Long-term liabilities 1.7 1.0 Total liabilities 9.4 9.2 2.0 0.8 Common shares 18.1 14.3 Retained earnings 25.6 21.0 Total equity $ 43.7 $ 35.3 Total liabilities and equity 19.4 Cash Short-term investments Accounts receivable Inventory Other current assets Total current assets All other assets 17.5 5.6 18.7 5.2 12.6 24.3 17.8 $ 43.7||$ 35.3 Total assets Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started