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The Balance Sheet and Income Statement information for Night Train, Inc for the last two years is presented below. You are a financial manager attempting
The Balance Sheet and Income Statement information for Night Train, Inc for the last two years is presented below. You are a financial manager attempting to identify initial red flags, strengths and weaknesses from just the information below. Which of the following statements is the best one describing Return on Assets (ROA)?BALANCE SHEET 2019 2020 INCOME STATEMENT 2019 2020 Cash 75,000 70,000 Sales 275,000 260,000 Marketable Securities 35,000 Accounts Receivable 25,000 30,000 Cost of Sales 195,000 190,000 30,000 Gross Profit 80,000 70,000 Inventory 45,000 55,000 Other Expenses 10,000 15,000 Fixed Assets 420,000 400,000 Earnings Before Total Assets 600,000 585,000 Interest & Taxes Accounts Payable 20,000 40,000 70,00 Interest 25,000 Short-Term Bank Loans 55,000 75,000 Earnings Before Taxes 45,000 Long-Term Debt 375,000 Total Liabilities 350,000 Taxes 10,000 450,000 465,000 Net Income 35,000 55,000 20,000 35,000 7,000 28,000 
The Balance Sheet and Income Statement information for Night Train, Inc for the last two years is presented below. You are a financial manager attempting to identify initial red flags, strengths and weaknesses from just the information below. Which of the following statements is the best one describing Return on Assets (ROA)
BALANCE SHEET
2019
2020
INCOME STATEMENT
2019
2020
Cash
75,000
70,000
Sales
275,000
260,000
Marketable Securities
35,000
Accounts Receivable
25,000
30,000
Cost of Sales
195,000
190,000
30,000
Gross Profit
80,000
70,000
Inventory
45,000
55,000
Other Expenses
10,000
15,000
Fixed Assets
420,000
400,000
Earnings Before
Total Assets
600,000
585,000
Interest & Taxes
Accounts Payable
20,000
40,000
70,00
Interest
25,000
Short-Term Bank Loans
55,000
75,000
Earnings Before Taxes
45,000
Long-Term Debt
375,000
Total Liabilities
350,000
Taxes
10,000
450,000
465,000
Net Income
35,000
55,000
20,000
35,000
7,000
28,000
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
