The year-end Year 2 financial statements for Grandier Inc., report net sales of $115,004 million, net...

The year-end Year 2 financial statements for Grandier Inc., report net sales of $115,004 million, net operating profit after tax of $4,593 million, net operating assets of $39,502 million. The year-end Year 1 balance sheet reports net operating assets of $41,829 million.

The company’s year-end Year 2 net operating asset turnover is:

Select one:

a. 2.91

b. There is not enough information to calculate the ratio.

c. 11.6%

d. 11.3%

e. 2.83

Expert Solution

Answer: e) 2.83

Net Operating asset turnover ratio= (Sales/Average net operating assets)

Net sales= $115,004 million

Average net operating assets= (Asset at beginning of the year + Assets at the end of the year)/2

= ($41,829 + $39,502)/2

= $40,665.5 million

Therefore, Net operating asset turnover ratio = Sales/Average net operating assets

= $115,004 million / $40,665.5 million

= 2.83 (Rounded)

ekkarill92 answered 3 years ago

BWT, Inc. shows the following data in its financial statements at the end of the year....

BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding for the entire year. 6.125% convertible bonds, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds outstanding. 6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of common stock, Issue price $100. 8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common shares, Issue price $80. 9,986 warrants are...

The following financial statements apply to Trenton Company: Year 4 Year 3 Revenues Net sales $...

The following financial statements apply to Trenton Company: Year 4 Year 3 Revenues Net sales $ 210,100 $ 175,600 Other revenues 8,600 6,600 Total revenues 218,700 182,200 Expenses Cost of goods sold 125,900 102,500 Selling expenses 19,900 17,900 General and administrative expenses 10,100 9,100 Interest expense 1,500 1,500 Income tax expense 19,300 17,300 Total expenses 176,700 148,300 Net income $ 42,000 $ 33,900 Assets Current assets Cash $ 5,400 $ 6,400 Marketable securities 1,200 1,200 Accounts receivable 36,300 31,500 Inventories...

The following financial statements apply to Thornton Company: Year 4 Year 3 Revenues Net sales $...

The following financial statements apply to Thornton Company: Year 4 Year 3 Revenues Net sales $ 210,100 $ 175,600 Other revenues 8,600 6,600 Total revenues 218,700 182,200 Expenses Cost of goods sold 125,900 102,500 Selling expenses 19,900 17,900 General and administrative expenses 10,100 9,100 Interest expense 1,500 1,500 Income tax expense 19,300 17,300 Total expenses 176,700 148,300 Net income $ 42,000 $ 33,900 Assets Current assets Cash $ 5,400 $ 6,400 Marketable securities 1,200 1,200 Accounts receivable 36,300 31,500 Inventories...

The following financial statements apply to Benson Company: Year 4 Year 3 Revenues Net sales $...

The following financial statements apply to Benson Company: Year 4 Year 3 Revenues Net sales $ 211,000 $ 176,600 Other revenues 8,300 6,300 Total revenues 219,300 182,900 Expenses Cost of goods sold 125,100 101,600 Selling expenses 20,700 18,700 General and administrative expenses 10,500 9,500 Interest expense 1,800 1,800 Income tax expense 19,000 16,600 Total expenses 177,100 148,200 Net income $ 42,200 $ 34,700 Assets Current assets Cash $ 4,500 $ 6,800 Marketable securities 3,000 3,000 Accounts receivable 35,700 30,600 Inventories...

Company A released financial statements for year end 2021. The financial statements were consolidated financial statements,...

Company A released financial statements for year end 2021. The financial statements were consolidated financial statements, which combined results of their own business, with the results of Company B. Based on this information, what type of business combination occurred on the date these two companies combined ? A) Statuatory Acquisition B) Statuatory Consolidation C) Statuatory Merger D) Hostile Takeover

7) In its most recent financial statements, Nessler Inc. reported $75 million of net income and...

7) In its most recent financial statements, Nessler Inc. reported $75 million of net income and $1,275 million of retained earnings. The previous retained earnings were $1,211 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $

In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,120...

In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,120 million of retained earnings. The previous retained earnings were $1,098 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $

In its most recent financial statements, Nessler Inc. reported $60 million of net income and $840...

In its most recent financial statements, Nessler Inc. reported $60 million of net income and $840 million of retained earnings. The previous retained earnings were $798 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

The annual sales for Salco, Inc. were $ 4.55 million last year. The firm's end-of-year balance...

The annual sales for Salco, Inc. were $ 4.55 million last year. The firm's end-of-year balance sheet was as follows: Current assets $499,000 Liabilities $1,001,500 Net fixed assets 1504000 Owners' equity 1001500 Total Assets $2,003,000 Total $2,003,000 LOADING.... Salco's income statement for the year was as follows: Sales $4,550,000 Less: Cost of goods sold (3,506,000) Gross profit $1,044,000 Less: Operating expenses (495,000) Net operating income $549,000 Less: Interest expense (101,000) Earnings before taxes $448,000 Less: Taxes (35%) (156,800) Net...

The annual sales for Salco, Inc. were $ 4.46 million last year. The firm's end-of-year balance...

The annual sales for Salco, Inc. were $ 4.46 million last year. The firm's end-of-year balance sheet was as follows: Salco's income statement for the year was as follows: a. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $ 1.09 million. The firm will maintain its present debt ratio of 50 percent when...

Question