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?

Transcribed Image Text:

Net sales Other current assets Total current assets Cost of goods sold Selling, general administrative expenses Gross properties, plant, equipment (4,438) 6,134 Operating cash Accounts receivable 3,226 Net other operating assets 916 681 Total assets 5,161 (996) Inventories 20 Net current liabilities 1,549 0 Long-term debt 300 Other expenses (341) 3,927 Deferred income taxes 208 Interest income 72 729 Preferred stock 0 Interest expense (47) Retained earnings 0 Provision for taxes (75) Accumulated depreciation (411) Common stock 3,104 Other income 245 Book value of fixed assets 318 Other liabilities 0 Net income 554 Goodwill 0 Total liabilities and equity 5,161