Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide help with profitability ratios 5. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of these four profitability

please provide help with profitability ratios

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

5. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of these four profitability ratios and an assessment of the company's ability to maintain if not improve profitability based on the amounts of equity, assets, and levels of profits from sales. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group. Profitability Ratios - Return on Equity (ROE) - Return on Assets (ROA) - Net Profit Margin - Operating Profit Margin \begin{tabular}{|l|r|r|r|} \hline ABC Company Balance Sheet & & & \\ \hline Period Ending & & & \\ \hline Assets & 2015 & 2014 & \\ \hline Current Assets & & & \\ \hline Cash and Cash Equivalents & & & \\ \hline Net Receivables & $9,135,000 & $7,281,000 & $6,789,000 \\ \hline Inventory & 6,778,000 & 6,677,000 & 6,525,000 \\ \hline Other Current Assets & 45,141,000 & 44,858,000 & 43,989,000 \\ \hline Total Current Assets & 2,224,000 & 2,369,000 & 2,199,000 \\ \hline Property Plant and Equipment & 63,278,000 & 61,185,000 & 59,502,000 \\ \hline Goodwill & 116,655,000 & 117,907,000 & 120,300,000 \\ \hline Other Assets & 18,102,000 & 19,510,000 & 17,900,000 \\ \hline Total Assets & 5,671,000 & 6,149,000 & 4,500,000 \\ \hline \end{tabular} verages

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 Markets And Institutions

Authors: Jeff Madura

6th Edition

0324162618, 978-0324162615

More Books

Students also viewed these Finance questions

Question

=+How can I use it in a new way?

Answered: 1 week ago

Question

=+2. Do they use a similar tone of voice and point of view?

Answered: 1 week ago