Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer the questions: Assets Liabilities and Equity Cash 10,000 Accounts payable 17,000 Marketable securities 2,000 Notes payable 6,000 Accounts

Use the following information to answer the questions: Assets Liabilities and Equity Cash 10,000 Accounts payable 17,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 3,000 Current liabilities 23,000 Inventory 33,000 Long-term debt 95,000 Current assets 48,000 Total liabilities 118,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 24,000 Fixed assets 114,000 Equity 44,000 Total assets 162,000 Total liab. & equity 162,000 Line item Value Sales 71,000 - Operating expenses 58,220 - Depreciation 2,000 = EBIT 10,780 - Interest 800 = Taxable income 9,980 - Taxes 3,293 = Net income 6,687 Part 1 What is the profit margin (aka net profit margin)? Part 2 What is the return on assets (aka return on total assets)? Part 3 What is the return on equity (aka return on common equity)?

Step by Step Solution

3.41 Rating (151 Votes )

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

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

17th Edition

032459237X, 978-0324592375

More Books

Students also viewed these Accounting questions

Question

1. Explain reasons for rules.

Answered: 1 week ago