Question
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
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 |
Ivanhoe Consumer Products Company Balance Sheet as of September 30, 2017 | ||||||
Assets: | Liabilities and Equity: | |||||
Cash and marketable securities | $6,200 | Accounts payable | $3,710 | |||
Investment securities | 427 | Accrued and other liabilities | 7,760 | |||
Accounts receivable | 4,746 | Taxes payable | 2,410 | |||
Inventory | 4,100 | Debt due within one year | 7,210 | |||
Deferred income taxes | 978 | |||||
Prepaid expenses and other receivables | 2,252 | |||||
Total current assets | $18,703 | Total current liabilities | $21,090 | |||
Property, plant, and equipment, at cost | 31,304 | Long-term debt | 12,410 | |||
Less: Accumulated depreciation | 10,897 | Deferred income taxes | 1,690 | |||
Net property, plant, and equipment | $20,407 | Other noncurrent liabilities | 2,100 | |||
Net goodwill and other intangible assets | 27,900 | Total liabilities | $37,290 | |||
Other noncurrent assets | 1,940 | Convertible Class A preferred stock | 1,140 | |||
Common stock | 2,100 | |||||
Retained earnings | 28,420 | |||||
Total stockholders equity | $31,660 | |||||
Total assets | $68,950 | Total liabilities and equity | $68,950 |
Using the DuPont identity, calculate the return on equity for Ivanhoe, after calculating the ratios that make up the DuPont identity. (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. 12.55 or 12.55%.)
Using the DuPont identity, calculate the return on equity for Ivanhoe, after calculating the ratios that make up the DuPont identity. (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. 12.55 or 12.55%.)
Net Profit margin | % | ||
Total assets turnover ratio | times | ||
Equity multiplier | |||
Return on assets | % | ||
Return on equity | % |
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