Question
Tables C and D show the income statement and balance sheet for a certain company. All quantities shown are in millions of dollars. What is
Tables C and D show the income statement and balance sheet for a certain company. All quantities shown are in millions of dollars. What is the company's ROA in 2020? Note: Express your answers in strictly numerical terms, and IN million of USDs."
TABLE C
Income Statement (in million of USDs)
2020
Total sales
400
Cost of sales
-250
Gross Profit
150
Selling, general, and administrative expenses
-60
Research and development
-22
Depreciation and amortization
-25
Other income
10
Earnings before interest and taxes (EBIT)
53
Interest income (expense)
-20
Pretax income
33
Taxes
-12
Net Income
21
TABLE D | |||
Balance Sheet (in million of USDs) | 2020 | ||
Assets | Liabilities | ||
Current Assets | Current Liabilities | ||
Cash | 100 | Accounts payable | 90 |
Accounts receivable | 95 | Notes payable/short-term debt | 15 |
Inventories | 55 | ||
Total current assets | 250 | Total current liabilities | 105 |
Long-Term Assets | Long-Term Liabilities | ||
Net property, plant, and equipment | 15 | Long-term debt | 90 |
Total long-term assets | 15 | Total long-term liabilities | 90 |
Total Liabilities | 195 | ||
Stockholders' Equity | 70 | ||
Total Assets | 265 | Total Liabilities and Stockholders' Equity | 265 |
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