Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Mathison, Inc., follow. MATHISON, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities

image text in transcribed
image text in transcribed
Some recent financial statements for Mathison, Inc., follow. MATHISON, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 5,298 $ 5,827 Accounts payable $ 3,754 $ 5,986 Accounts receivable 7,707 9,477 Notes payable 2,045 3,055 Inventory 12,150 22,956 Other 152 179 Total $ 25,155 $38,260 Total $ 5,951 $ 9,220 Long-term debt $ 22,700 $ 19,000 Owners' equity Common stock and paid-in surplus $ 43,000 $ 43,000 Fixed assets Accumulated retained earnings 28,805 47,189 Net plant and equipment $ 75,301 $ 80,149 Total $ 71,805 $ 90,189 Total assets $100,456 $118,409 Total liabilities and owners' equity $100,456 $ 118,409 MATHISON, INC. 2019 Income Statement Sales $ 249,854 Cost of goods sold 204,317 Depreciation 8,730 $ 36,807 2,811 EBIT Interest paid Taxable income Taxes $ 33.996 7,139 Net income $ 26,857 $ Dividends Retained earnings 8,473 18,384 DA MATHISON, INC. 2019 Income Statement Sales $ 249,854 Cost of goods 204,317 sold Depreciation 8,730 EBIT $ 36,807 Interest paid 2,811 Taxable income $ 33.996 Taxes 7,139 Net income $ 26,857 $ Dividends Retained earnings 8,473 18,384 Construct the DuPont identity for Mathison, Inc. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your profit margin and return on equity answers as a percent.) Answer is complete but not entirely correct. Profit margin Total asset turnover Equity multiplier Return on equity 10.75% 2.28 times 1.35 times 33.09 %

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

Auditing Sustainable Development Goals Key Principles And Tools For Supply Chain

Authors: Barden Gonzalez

1st Edition

B0BZFDM86C, 979-8388651501

More Books

Students also viewed these Accounting questions