Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ, LLC reported a profit margin of 9 percent, sales of $26.2 million, and total assets of $8.2 million. a. What was the total asset
XYZ, LLC reported a profit margin of 9 percent, sales of $26.2 million, and total assets of $8.2 million. |
a. | What was the total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | If management set a goal of increasing total asset turnover to 3.25 times, what would the new sales figure need to be, assuming no increase in total assets? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar, e.g., 1,234,567.) |
Bald Eagle, Inc.
reports the following balance sheet information for 2018 and 2019. |
Bald Eagle, Inc. Balance Sheets as of December 31, 2018 and 2019 | |||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||
Assets | Liabilities and Owners Equity | ||||||||||||
Current assets | Current liabilities | ||||||||||||
Cash | $ | 40,010 | $ | 51,181 | Accounts payable | $ | 191,922 | $ | 199,611 | ||||
Accounts receivable | 60,281 | 80,639 | Notes payable | 87,020 | 138,588 | ||||||||
Inventory | 128,441 | 194,689 | |||||||||||
Total | $ | 278,942 | $ | 338,199 | |||||||||
Total | $ | 228,732 | $ | 326,509 | |||||||||
Long-term debt | $ | 241,000 | $ | 177,750 | |||||||||
Owners equity | |||||||||||||
Common stock and paid-in surplus | $ | 214,000 | $ | 214,000 | |||||||||
Accumulated retained earnings | 152,537 | 186,038 | |||||||||||
Fixed assets | |||||||||||||
Net plant and equipment | $ | 657,747 | $ | 589,478 | Total | $ | 366,537 | $ | 400,038 | ||||
Total assets | $ | 886,479 | $ | 915,987 | Total liabilities and owners equity | $ | 886,479 | $ | 915,987 | ||||
Suppose that the Bald Eagle had sales of $2,216,873 and net income of $103,381 for the year ending December 31, 2019. |
Calculate ROE using the DuPont identity. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin and return on equity as a percent.) |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started