Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are the financial statements for Ivanhoe Consumer Products Company for the fiscal year ended September 30, 2017 Ivanhoe Consumer Products Company Income Statement

image text in transcribed
image text in transcribed
The following are the financial statements for Ivanhoe Consumer Products Company for the fiscal year ended September 30, 2017 Ivanhoe Consumer Products Company Income Statement for the Fiscal Year Ended September 30, 2017 Net sales $57,640 Cost of products sold 24,507 Gross profit $33,133 Marketing, research, administrative expense 12,100 Depreciation 780 Operating income (loss) $20.253 Interest expense 487 Earnings (loss) before income taxes $19.766 Income taxes 6,076 Net earnings (loss) $13,690 $3,710 7,760 Ivanhoe Consumer Products Company Balance Sheet as of September 30, 2017 Assets: Liabilities and Equity: Cash and marketable securities $6,200 Accounts payable Investment securities 427 Accrued and other liabilities Accounts receivable 4,746 Taxes payable Inventory 4,100 Debt due within one year Deferred income taxes 978 Prepaid expenses and other receivables 2.252 2.410 7,210 Debt due within one year Inventory Deferred income taxes Prepaid expenses and other receivables Total current assets Property, plant, and equipment, at cost Less: Accumulated depreciation Net property, plant, and equipment Net goodwill and other intangible assets Other noncurrent assets 4,100 978 2.252 $18,703 31,304 10.897 $20,407 27.900 1,940 Total current liabilities Long-term debt Deferred income taxes Other noncurrent liabilities Total liabilities Convertible Class A preferred stock Common stock Retained earnings Total stockholders' equity Total liabilities and equity $21,090 12.410 1,690 2.100 $37,290 1,140 2.100 28,420 $31,660 $68,950 Total assets $68,950 Using the DuPont identity, calculate the return on equity for Ivanhoe, after calculating the ratios that make up the Dupon (Round ROA and ROE to one decimal place, e.g 12.5 or 12.5% and all other answers to 2 decimal places, e.g. 12. 12.55%) Net Profit margin % Total assets turnover ratio times Equity multiplier Return on assets % Return on equity %

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

Finance Applications And Theory

Authors: Marcia Cornett, Troy Adair, John Nofsinger

5th Edition

1260013987, 9781260013986

More Books

Students also viewed these Finance questions