Question
Net Sales 6,134 Cost of Goods Sold (4438) Selling, General Admin. Expense (996) Other Expenses (341) Interest Income 72 Interest Expense (47) Provision for Taxes
Net Sales
6,134
Cost of Goods Sold
(4438)
Selling, General Admin. Expense
(996)
Other Expenses
(341)
Interest Income
72
Interest Expense
(47)
Provision for Taxes
(75)
Other Income
245
Net Income
554
Operating Cash
3,226
Accounts Receivable
681
Inventories
20
Other Current Assets
0
Total Current Assets
3,927
Gross Prop., Plant, Equip.
729
Accumulated Depreciation
(411)
Book Value of Fixed Assets
318
Goodwill
0
Net Other Operating Assets
916
Total Assets
5,161
Net Current Liabilities
1,549
Long-Term Debt
300
Deferred Income Taxes
208
Preferred Stock
0
Retained Earnings
0
Common Stock
3,104
Other Liabilities
0
Total Liabilities and Equity
5,161
---------
Gross prof margin - 27.6%
Return on Assets - 10.7%
Return on equity - 17.8%
current ratio - 2.5
------------------------
Question: If this firm's WACC is 6.6% and the average firm in its industry has an ROA of 8%, is this firm earning above or below normal economic performance and above or below average accounting performance?
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Financial Shenanigans
Authors: Howard Schilit
2nd Edition
0071386262, 9780071386265
