The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands): Required For each year:

Question:

The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands):

2018 2019 2020 Sales Average total assets Average shareholders' equity Net income Gross profit $28,274 $25,704 33,201 20

Required

For each year:

a. Calculate the return on equity. Comment on the trend in this ratio.

b. Calculate the return on assets. Comment on the trend in this ratio.

c. Calculate the company’s gross margin. Comment on the trend in this ratio.

d. Comment on the profitability of Gloucester Estates Wines Ltd.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

See More Books

Question Posted: Jul 26, 2019 07:59 AM

See More Questions

You are considering investing in the grocery sector and have identified two companies for further analysis. Financial information for the two companies is as follows: Required a. Calculate and...
There is judgement involved in preparing financial statements. For example, management must often estimate warranty expense and bad debts expense. Management may also need to select an accounting...
The following information is available for Beauvalon Inc. for the preparation of its September 30, 2020, financial statements: Income before taxes...
Implement the method keys () for HashST.
Homogeneous Systems In Problems 1-3 determine all the solutions of AxÌ = 0Ì, where is the matrix shown is the RREF of the augmented matrix [A | bÌ]. a. b. c. [1 - 4 3 0 | 0] 12 0...
If you place 0C ice into 0C water in an insulated container, what will happen? Will some ice melt, will more water freeze, or will neither take place?
1. Under equity theory, the noncontrolling interest at acquisition is: a $130,000 b $126,000 c $140,000 d None of the above
The accountant for Sierra Corp. prepared the following schedule of liabilities as of December 31, 2011. Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
Displaying data in charts and graphs, such as histograms, pie charts, and bar charts, can make the data easier for your audience to interpret. How would you display your data, for a health issue...
The Pacific Digital Cellular (PDC) TDMA system uses a 42.0 kbps data rate to support 3 uses per frame. Each user occupies 2 of the 6 time slots per frame. (a) What is the raw data rate provided for...
The following financial information relates to Platinum City Ltd. (amounts in thousands): Required a. Calculate the debt to equity, debt as a percentage of total capitalization, and interest coverage...
Two companies in the travel and tourism industry had the following information: Required a. Calculate the P/E ratios for both companies and comment on which is more affordable from that perspective....
The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. The companys actual sales were 26,000 units at $480,000. Actual...
Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading...
(7%) Problem 11: A student launches a small rocket which starts from rest at ground level. At a height h = 2.09 km, the rocket reaches a speed of v = 291 m/s. At that height, the rocket runs out of...
2. For the following three sets of electric field lines, what charge or charges would make such lines? Indicate their locations and type of charge (e.g. positive/negative) a.
What is the most important take-home point that you learned from this video? https://www.youtube.com/watch?v=nUZqvsF_Wt0 2. Policy Problems. What is onepolicy that creates inequality in the labor...
An employee had $20,300 in gross earnings up to September 20, 2021. She has the following information for her pay for the week ending September 27, 2021. Her employer contributes 100% toward CPP and...
Coors Company expects sales of $340,000 (4,000 units at $85 per unit). The companys total fixed costs are $175,000 and its variable costs are $35 per unit. Compute (a) Break-even in units and (b) The...
Hardin Services Co. experienced the following events in 2016: 1. Provided services on account. 2. Collected cash for accounts receivable. 3. Attempted to collect an account and, when unsuccessful,...
In August 2024, Heavy-lift Helicopters Ltd. purchased a new helicopter for its logging and heavy lift operations at a cost of $1.2 million. Based on past experience, management has determined that...
Far North Airways Ltd. purchased a used Cessna 280 Caravan for its flight operations in September 2024. Far North paid $2,465,000 for the plane. Based on past experience, management has determined...
A machine that produces cellphone components is purchased on January 1, 2024, for $100,000. It is expected to have a useful life of four years and a residual value of $10,000. The machine is expected...
Mediocre Company has sales of $120,000, fixed expenses of $24,000, and a net income of $12,000. If sales rose 10%, the new net income would be: Question 18 options: $16,800 $36,000 $13,200 $15,600
1. Why might managers of small restaurants decide not to adopt the standard work hour approach to controlling labour cost? (minimum 150 words )
Which statement is true regarding the U.S. GAAP impairment test for limited life intangibles? A. U.S. GAAP impairment is likely to be greater than IFRS impairment. B. The impairment test for limited...

The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands): Required For each year:

Question:

2018 2019 2020 Sales Average total assets Average shareholders' equity Net income Gross profit $28,274 $25,704 33,201 20,530 1,001 12,852 $31,102 49,226 24,841 2,560 44,751 22,583 2,399 17,973 16,047

Step by Step Answer:

a Return on Equity ROE 2018 1001 20530 49 2019 2399 22583 106 2020 2560 24841 103 Gloucester Estate ...View the full answer

Understanding Financial Accounting

Students also viewed these Business questions