Fondren Machine Tools has total assets of $3,010,000 and current assets of $851,000. It turns over...

Fondren Machine Tools has total assets of $3,010,000 and current assets of $851,000. It turns over its fixed assets 3.3 times per year. Its return on sales is 7.9 percent. It has $1,750,000 of debt.

What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Expert Solution

Fixed assets = Total assets - Current assets = $3,010,000 - $851,000 = $2,159,000

Sales = Fixed assets * Fixed asset turnover
= $2,159,000 * 3.3
= $7,124,700

Net income = Sales * Return on sales
= $7,124,700 * 7.9%
= $562,851.30

Equity = Total asset - debt = $3,010,000 - $1,750,000 = $1,260,000

Return on stockholders’ equity = Net income / Equity
= $562,851.30 / $1,260,000
= 44.67%

Return on stockholders’ equity = 44.67%

jeff jeffy answered 2 years ago

Balance the budget sheet: Current Assets: Total Current Assets: Property and equipment: Other assets: Total Assets:...

Balance the budget sheet: Current Assets: Total Current Assets: Property and equipment: Other assets: Total Assets: Current liabilities: Total Current Liabilities: Total Liabilities: Share holders equity Total Liabilities & Share holders Equity: Instructions: Please place the following items and amounts in their correct locations on the balance sheet Accounts payable $30,000 Accounts receivable $20,000 Investments $10,000 Common stock $10,000 Additional paid-in capital $20,000 Prepaid expense $4,000 Cash and cash equivalents $100,000 Deferred revenue $2,000 Notes payable $10,000 Inventory $15,000 Retained...

A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets...

A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets of $3,000,000 and Total Liabilities of $3,500,000. Which of the following statements is correct: a. this firm is bankrupt b. this firm has a Quick Ratio that is greater than one c. this firm has positive equity d. this firm is technically insolvent

Green Lumber has - Total sales of $387,200, - Total assets of $429,600, - Current liabilities...

Green Lumber has - Total sales of $387,200, - Total assets of $429,600, - Current liabilities of $45,000, - Dividends paid of $24,000, - Net income of $57,700. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. Assume the firm is currently operating at full capacity. If the firm's managers project a firm growth rate of 12 percent for next year, what will be the amount of external...

A firm’s total current assets are 18.3% of total assets, thecurrent ratio is 1.98, and...

A firm’s total current assets are 18.3% of total assets, the current ratio is 1.98, and the quick ratio is 1.46. What is the firm’s inventory, in % of assets? Round to the nearest 0.1%, drop the % symbol. E.g., if your answer is 5.45%, record it as 5.5.

A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal...

A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal $30,000. What is the book value of the equities for the firm if long-term debt is $7,500? $18,500 $14,500 $10,500 $18,900

A firms has net working capital of $250,500, current assets of$487,200, total assets of $1,711,000,...

A firms has net working capital of $250,500, current assets of $487,200, total assets of $1,711,000, , and long-term debt of $350,000. What is the total debt ratio?Group of answer choices.34.20.39.28.14

1. Quick Ratio= current assets-inventories/ current liabilities 2. Debt to Assets ratio= total debt/total assets 3....

1. Quick Ratio= current assets-inventories/ current liabilities 2. Debt to Assets ratio= total debt/total assets 3. Earnings Per Share (EPS)=total earnings/outstanding shares (must first solve net income-preferred divideneds= total earnings) 4. Net Income (Net profit)=total revenues-total expenses I need help finding the answer to these equations for Target Corporation for 2015 and 2016. please refer to the links for the 10k reports for the company. 2015- https://corporate.target.com/_media/TargetCorp/annualreports/2015/pdfs/Target-2015-Annual-Report.pdf 2016- https://corporate.target.com/_media/TargetCorp/annualreports/2016/pdfs/Target-2016-Annual-Report.pdf?ext=.pdf

($ in millions) Current assets 115 Fixed and other assets 165 Total assets 280 Current liabilities...

($ in millions) Current assets 115 Fixed and other assets 165 Total assets 280 Current liabilities 81 Long-term debt 48 Stockholders' equity 151 Total liabilities and equity 280 Common shares outstanding (millions) 14 Total revenues 436 Total operating costs and expenses 350 Interest expense 15 Income taxes 23 Net profits 48 Dividends paid to common stockholders 13 On the basis of this information, calculate as many liquidity, activity, leverage, profitability, and common stock measures as you can. (Note: Assume the...

Flying Penguins Corp. has total current assets of $8,755,000, current liabilities of $5,855,000, and a quick...

Flying Penguins Corp. has total current assets of $8,755,000, current liabilities of $5,855,000, and a quick ratio of 0.78. How much inventory does it have? (Round answer to nearest dollar, e.g. 5,675.) Level of inventory $

a firm has total assets of 25 million TL. Its current assets is 10 million TL...

a firm has total assets of 25 million TL. Its current assets is 10 million TL and fixed assets (machinery, real estate etc) is 15 million TL. This firm’s financial leverage is %45. Firm has 1 500 000 total outstanding shares with 900 000 shares trading at the stock market and one share sells 10 TL in the stock market. What is the firm’s Price/Book ratio( PD/DD)? Calculate the expected stock price and market cap if the average Price/Book ratio...

Question