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Use the following information to answer the questions: Assets Liabilities and Equity Cash 12,000 Accounts payable 19,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable
Use the following information to answer the questions:
Assets | Liabilities and Equity | |||
Cash | 12,000 | Accounts payable | 19,000 | |
Marketable securities | 2,000 | Notes payable | 6,000 | |
Accounts receivable | 7,000 | Current liabilities | 25,000 | |
Inventory | 42,000 | Long-term debt | 95,000 | |
Current assets | 63,000 | Total liabilities | 120,000 | |
Machines | 34,000 | Paid-in capital | 20,000 | |
Real estate | 80,000 | Retained earnings | 37,000 | |
Fixed assets | 114,000 | Total equity | 57,000 | |
Total assets | 177,000 | Total liab. & equity | 177,000 |
Line item | Value |
Sales | 72,000 |
- Operating expenses | 59,040 |
- Depreciation | 2,000 |
= EBIT | 10,960 |
- Interest | 800 |
= Taxable income | 10,160 |
- Taxes (33%) | 3,353 |
= Net income | 6,807 |
Part 1: What is the operating margin? Part 2: What is the profit margin (aka net profit margin)? Part 3: What is the return on assets (aka return on total assets)? Part 4: What is the return on equity (aka return on common equity)? Part 5: What is the return on invested capital?
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