Question
You are given the following information for Smashville, Inc. Cost of goods sold: $200,000 Investment income: $2,700 Net sales: $333,000 Operating expense: $47,000 Interest expense:
You are given the following information for Smashville, Inc.
| Cost of goods sold: | $200,000 | |
| Investment income: | $2,700 | |
| Net sales: | $333,000 | |
| Operating expense: | $47,000 | |
| Interest expense: | $7,400 | |
| Dividends: | $16,000 | |
| Tax rate: | 21 | % |
| Current liabilities: | $26,000 |
| Cash: | $21,000 |
| Long-term debt: | $21,000 |
| Other assets: | $43,000 |
| Fixed assets: | $159,000 |
| Other liabilities: | $5,000 |
| Investments: | $47,000 |
| Operating assets: | $39,000 |
Calculate the gross margin, the operating margin, return on assets, and return on equity.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
