Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the information provided, calculate this firm's ROA, ROE, gross profit margin, and quick ratio. If this firm's WACC is 6.6 percent and the average

image text in transcribed
Using the information provided, calculate this firm's ROA, ROE, gross profit margin, and quick ratio. If this firm's WACC is 6.6 percent and the average firm in its industry has an ROA of 8 percent, is this firm earning above or below normal economic performance and above or below average accounting performance? Net sales 6, 134 Cost of goods sold (4, 438) Selling, general administrative expenses (996) Other current assets 0 Total current assets 3, 927 Gross properties, plant, equipment 729 Retained earnings 0 Common stock 3, 104 Other liabilities 0 Total liabilities and equity 5, 161 Operating cash 3, 226 Accounts receivable 681 Inventories 20 Long-term debt 300 Deferred income taxes 208 Preferred stock 0 Provision for taxes (75) Other income 245 Net income 554 Net other operating assets 916 Total assets 5, 161 Net current liabilities 1, 549 Other expenses (341) Interest income 72 Interest expense (47) Accumulated depreciation (411) Book value of fixed assets 318 Goodwill 0

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

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

21st Edition

978-1259916984

More Books

Students also viewed these Accounting questions

Question

=+ Where would most corporations like the balance to fall?

Answered: 1 week ago