Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that the Bethesda Mining Company had sales of $2,316,873 and net income of $93,381 for the year ending December 31, 2019. Calculate ROE using

image text in transcribed Suppose that the Bethesda Mining Company had sales of $2,316,873 and net income of $93,381 for the year ending December 31, 2019.

Calculate ROE using the DuPont identity.

Profit margin% =

Total asset turnover times =

Equity multiplier times =

Return on equity% =

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. 2018 2019 Assets Current assets Cash Accounts receivable BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 Liabilities and Owners' Equity Current liabilities $ 65,470 $ 82,487 Accounts payable 65,281 85,639 Notes payable 116,676 181,549 $ 186,922 $ 194,611 82,020 133,588 Inventory Total $268,942 $ 328,199 Total $247,427 $349,675 Long-term debt $ 231,000 $ 167,750 Owners' equity Common stock and paid-in surplus $224,000 $224,000 Accumulated retained earnings 182,232 219,704 Fixed assets Net plant and equipment $658,747 $589,978 Total $406,232 $ 443,704 Total assets $ 906,174 $939,653 Total liabilities and owners' equity $ 906,174 $939,653

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

Financial Management Principles And Practice

Authors: Timothy J. Gallagher, Joseph D. Andrew

3rd Edition

0131768824, 978-0131768826

More Books

Students also viewed these Finance questions

Question

What is biochemical oxygen demand? How is BOD related to sewage?

Answered: 1 week ago