Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following financial details are provided for the Garcia Division of NOP Corporation for the year ended December 31, Year 16: Garcia Division Income Statement

The following financial details are provided for the Garcia Division of NOP Corporation for the year ended December 31, Year 16:

Garcia Division Income Statement

Description

Amount ($)

Sales revenue

1,550,600

Cost of goods sold

940,500

Gross margin

610,100

Operating expenses

385,500

Depreciation expense

80,700

Operating income

143,900

Nonoperating items

53,200

Loss on sale of equipment

(18,300)

Net income

178,800

Garcia Division Balance Sheet

Assets

Amount ($)

Cash

155,300

Accounts receivable

320,400

Merchandise inventory

260,300

Equipment less accumulated depreciation

420,000

Total assets

1,155,900


Liabilities and Stockholders' Equity

Amount ($)

Accounts payable

220,200

Notes payable

98,400

Stockholders' equity

837,300

Total liabilities and stockholders' equity

1,155,900

Required:

  1. Calculate the gross margin ratio for Garcia Division.
  2. Determine the return on assets (ROA) for Garcia Division.
  3. Compute the current ratio for Garcia Division.
  4. Evaluate the debt to equity ratio for Garcia Division.
  5. Assess the Garcia Division’s operating margin.

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_2

Step: 3

blur-text-image_3

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

Accounting Volume 1

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

9th Canadian edition

978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096

More Books

Students also viewed these Accounting questions