Question #16 The Grist Mill Company provided the following financial information as of the calendar year...

Question #16 The Grist Mill Company provided the following financial information as of the calendar year 2019:

• Return on Equity of 14.6%

• Return on Assets of 7.8%

• Profit Margin of 8.1%

• Retention Ratio of 72%

Required: Calculate the Internal Growth Rate

Solutions

Expert Solution

Given in the question,

Return on Assets = 7.8% = 0.078

Retention Ratio = 72% = 0.72

Internal Growth Rate = Return on Assets X Retention Ratio

= 0.078 X 0.72 (Substituting the value from above)

= 0.05616

= 5.616% (Multiplying by 100 to convert to percent)

= 5.62% (Round off to 2 decimal place)

Please give likes for the work. Thanks & Regards.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Ellerson Company provided the following information for the last calendar year: Beginning inventory: Direct materials $67,000...

Ellerson Company provided the following information for the last calendar year: Beginning inventory: Direct materials $67,000 Work in process 29,400 Finished goods 43,200 Ending inventory: Direct materials $70,400 Work in process 40,000 Finished goods 42,100 During the year, direct materials purchases amounted to $280,000, direct labor cost was $189,000, and overhead cost was $530,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. $ 2. Calculate the cost of goods...

Exercise 16-15 Sheffield Inc. uses a calendar year for financial reporting. The company is authorized to...

Exercise 16-15 Sheffield Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,420,000 shares of $12 par common stock. At no time has Sheffield issued any potentially dilutive securities. Listed below is a summary of Sheffield’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 2,010,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2016 241,200 3. Shares issued for cash on March...

Exercise 16-15 Nash Inc. uses a calendar year for financial reporting. The company is authorized to...

Exercise 16-15 Nash Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,880,000 shares of $12 par common stock. At no time has Nash issued any potentially dilutive securities. Listed below is a summary of Nash’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,090,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2019 250,800 3. Shares issued for cash on March...

Exercise 16-15 Sarasota Inc. uses a calendar year for financial reporting. The company is authorized to...

Exercise 16-15 Sarasota Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,640,000 shares of $10 par common stock. At no time has Sarasota issued any potentially dilutive securities. Listed below is a summary of Sarasota’s common stock activities. 1.Number of common shares issued and outstanding at December 31, 2015 2,140,000 2.Shares issued as a result of a 10% stock dividend on September 30, 2016 214,000 3.Shares issued for cash on March 31, 2017 2,160,000...

Hampton Company reports the following information for its recent calendar year.

Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 78,000 Accounts receivable increase $ 8,000 Expenses: Inventory decrease 2,000 Cost of goods sold 38,000 Salaries payable increase 700 Salaries expense 14,000 Depreciation expense 8,000 Net income $ 18,000 Required:Prepare...

PROBLEM 16 See calendar for due date. Use the working papers for provided. Dorman Products Company...

PROBLEM 16 See calendar for due date. Use the working papers for provided. Dorman Products Company uses a job order cost system and applies overhead to production on the basis of direct labor cost. On January 1, 2017, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $27,000; direct labor $16,000; and manufacturing overhead $24,000. Job No. 49 had been completed at a cost of...

[The following information applies to the questions displayed below.] The following calendar year-end information is...

[The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 28,200 Direct labor $ 686,300 Depreciation expense—Office equipment 9,100 Income taxes expense 268,200 Depreciation expense—Selling equipment 10,200 Indirect labor 58,600 Depreciation expense—Factory equipment 32,800 Miscellaneous production costs 10,700 Factory supervision 131,500 Office salaries expense 73,000 Factory supplies used 8,400 Raw materials purchases 967,000 Factory utilities...

Statement of Cash Flows Question 1 You are provided the following financial information for Moore Mangoes...

Statement of Cash Flows Question 1 You are provided the following financial information for Moore Mangoes Company – a fruit & vegetable shop owned by T. Moore : MOORE MANGOES LTD COMPARATIVE BALANCE SHEETS AS AT JUNE 30 2017 2016 Current Assets Cash on hand $1,300 $1,800 Accounts Receivable (net) 1,855 2,100 Inventory 4,600 4,350 Prepaid Rent Expenses 1,200 $8,955 900 $9,150 Non Current Assets Equipment 42,600 41,000 Accumulated Depreciation (21,000) 21,600 (20,200) 20,800 Total Assets $30,555 $29,950 Current Liabilities...

Which of the following information is not provided by the financial markets? ____ A)The price of...

Which of the following information is not provided by the financial markets? ____ A)The price of six ounces of gold B)The earnings of Microsoft in 2017 C)The cost of borrowing $500,000 for five years D)The cost of wiring ¥1,000,000 to Japan

Arcane Industries has provided the following financial information:

Arcane Industries has provided the following financial information:20182019Sales$1,350,000$1,600,000Cost of Goods Sold750,000875,000Receivables Ending Balance175,000300,000Inventory Ending Balance300,000250,000Payables Ending Balance125,000175,000Calculate the following:Inventory Turnover: Days Inventory on Hand: Receivables Turnover: Days Sales Outstanding: Payables Turnover: Days Payables Outstanding: Cash Conversion Cycle (# of days):

Subjects