Note: Please use excel 3. Smith, Inc., has sales of $17.2 million, total assets of $16.1...

Note: Please use excel

3. Smith, Inc., has sales of $17.2 million, total assets of $16.1 million, and total debt of $7.5 million. If the profit margin is 5%, what is net income? ROA? ROE?

4. Vitron Corp. has a current accounts receivable balance of $483,810. Credit sales for the year ended were $5,700,000. What is the receivables turnover? The days’ sales in receivables?

5.Beakman, Inc. has ending inventory of $400,000, and a cost of goods sold for the year ended $3,800,000. What is the inventory turnover? The days’ sales in inventory?

Solutions

Expert Solution

Given,

Sales = $17.2 million

Total assets = $16.1 million

Total Debt = $7.5 million

Profit Margin = 5%

Net Income calculation:

Profit Margin = (Net Income/Sales)*100

5 = (Net Income/17.2)*100

After solving above equation, we get Net Income = $ 0.86 million

ROA Calculation:

Return on Asset (ROA) = (Net Income / Total Assets) * 100

ROA = ( 0.86/16.1)*100

ROA = 5.3416 %

ROE Calculations:

Return On Equity = (Net Income / Shareholders Equity)*100

We need to calculate Shareholders Equity using below equation

Assets = Liabilies + Equity

16.1 = 7.5 + Equity

Therefore Shareholders Equity = $ 8.6 millions

ROE = ( 0.86 / 8.6 )*100

ROE = 10%

Following snapshot shows the working in excel for the same:

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Smith, Inc., has sales of $17.2 million, total assets of $16.1 million, and total debt of $7.5 million.

Smith, Inc., has sales of $17.2 million, total assets of $16.1 million, and total debt of $7.5 million. If the profit margin is 5%, what is net income? ROA? ROE? (10 Points)(Use Excel and Excel Formulas)

2. The Burger Hut has sales of $29 million, total assets of $43 million, and total...

2. The Burger Hut has sales of $29 million, total assets of $43 million, and total debt of $13 million. The profit margin is 11 percent. What is the return on equity? 3. Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.3. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets? 4....

2. The Burger Hut has sales of $29 million, total assets of $43 million, and total...

Wood Recovery has sales of $397,000, total assets of $225,000, and total debt of $101,700 million.

Wood Recovery has sales of $397,000, total assets of $225,000, and total debt of $101,700 million. The net profit margin is 6.2 percent. What is the return on equity? Multiple Choice19.96%5.99%32.20%1.32%

Dearborn Supplies has total sales of $191 million, assets of $95 million, a return on equity...

Dearborn Supplies has total sales of $191 million, assets of $95 million, a return on equity of 32 percent, and a net profit margin of 7.3 percent. What is the firms debt ratio? The company's debt ratio is what percent? Round to one decimal place.

Exhibit 1 Florence Farm, Inc. has total assets of $15.4 million of which $6.2 million are...

Exhibit 1 Florence Farm, Inc. has total assets of $15.4 million of which $6.2 million are current assets. Cash makes up 18 percent of the current assets and accounts receivable makes up another 40 percent of current assets. Florence Farm’s gross plant and equipment has an original cost of $10.35 million and other long-term assets have a cost value of $1.5 million. Use Exhibit 1. What is the balance of inventory on Florence Farm’s balance sheet? A. less than $2.40...

A mutual fund has total assets worth of $50 million. Suppose the fund owes $3 million...

A mutual fund has total assets worth of $50 million. Suppose the fund owes $3 million to its investment advisers and owes another $2 million for rent, wages due, and miscellaneous expenses. The fund has 15 million shares. What is the NAV per share of this fund? 3.333333333 3 3.2 3.133333333

Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on...

Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company. Use Excel to perform a forward selection regression analysis. Assume a 5% level of significance. Identify observation 2 in the original dataset. Use the observed values from observation 2 to find the predicted value y-hat based on your final model selected. Write your answer as...

Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on...

Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company. Use Excel to perform a forward selection regression analysis. Assume a 5% level of significance. Based on your final model, what is the p-value from the test of the overall model? Write your answer as a number and round to 3 decimal places. Excel Data:...

In 2016, the Allen Corporation had sales of $60 million, total assets of $50 million, and total liabilities of $16 million.

In 2016, the Allen Corporation had sales of $60 million, total assets of $50 million, and total liabilities of $16 million. The interest rate on the company's debt is 5.7%, and it's tax rate is 35%. The operating profit margin is 13%.Please answer: a. Compute the firm's 2016 net operating income and net income.b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)

Subjects