You are provided with the following information about Unwin Corp. (Unwin), a small manufacturing company: Required: a.
Question:
You are provided with the following information about Unwin Corp. (Unwin), a small manufacturing company:
Required:
a. Calculate Unwin’s return on assets by determining its profit margin and asset turnover ratio.
b. Calculate Unwin’s return on equity.
c. Assess the Unwin’s profitability. In your response, explain the reasons for any changes in it.
Transcribed Image Text:
2013 2012 2011 2010 2009 Sales $3,273,600 $3,059,440 $2,913,750 $2,625,000 Net income (before interest, 133,750 128,495 110,725 91,875 after taxes) Total liabilities (at year-end) 865,685 816,685 735,750 681,250 625,000 Shareholders' equity (at year-end) 954,200 813,440 684,940 574,220 482,345 Interest expense 87,500 75,000 37,500 87,500 Tax rate 16% 16% 16% 16%
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