Question
In: Finance
If the return on assets is 0.10 and the average assets are 100. The net income...
If the return on assets is 0.10 and the average assets are 100. The net income is
10
110
90
None of the above
If an analyst notes that inventory increased by 10% from 2014 to 2015 the analyst is using
Vertical analysis
Horizontal analysis
RMA
None of the above
Eps is $4.50 and average number of common shares outstanding is 100,000 the net income minus preferred dividends is
$90,000
$45,000
$450,000
None of the above
Which of the following rations measure liquidity?
Current
Payout
Gross margin
Asset turnover
None of the above
Solutions
Expert Solution
Return on asset = Net income/ average asset
.10 = Net income/ 100
Net income = 10 (A)
--------------------------------------------------------------------------------------------------------------------------
The correct answer is horizontal analysis
--------------------------------------------------------------------------------------------------------------------------
Earnings per share = Net income/ number of o/s common shares
4.5 = Net income/ 100000
Net income = 450000
So we have net income, but value of preferred dividend is not given in the question, and it’s can’t be determined with the given data in the question.
--------------------------------------------------------------------------------------------------------------------------
The current ratio measure liquidity, by dividing current asset by current liability
--------------------------------------------------------------------------------------------------------------------------
Hope that helps.
Feel free to comment if you need further assistance J
jeff jeffy answered 2 years agoRelated Solutions
1) A company had net income of $2,740,000, net sales of $26,500,000, and average total assets...
1)
A company had net income of $2,740,000, net sales of
$26,500,000, and average total assets of $11,800,000. Its return on
total assets equals:
Multiple Choice
23.22%.
44.53%.
10.34%.
4.31%.
430.66%.
2)
Using the information below, calculate cost of goods sold for
the period:
Sales revenues for
the period
$
1,316,000
Operating expenses for the
period
251,000
Finished Goods Inventory,
January 1
48,000
Finished Goods Inventory,
December 31
53,000
Cost of goods manufactured for
the period
552,000
Multiple Choice
$798,000....
1. A company had net income of $48,000, net sales of $380,000, and average total assets...
1. A company had net income of $48,000, net
sales of $380,000, and average total assets of $280,000. Its profit
margin and total asset turnover were respectively: Multiple Choice
1.36%; 0.17. 1.97%; 1.36. 12.63%; 1.36. 1.36%; 12.63. 12.63%;
0.17.
2. Six months ago, a company purchased an
investment in stock for $69,000. The investment is classified as
available-for-sale securities. This is the company’s first and only
investment in available-for-sale securities. The current fair value
of the stock is $72,600. The...
What would be the potential impact on the net income, return on assets, and debt-to-asset ratio...
What would be the potential impact on the net income, return on
assets, and debt-to-asset ratio if ALL of a company’s “goodwill” on
the balance sheet is considered impaired and of no
value? (if goodwill is of zero value, the company has to
write off the value as a loss and remove goodwill from its total
assets)
What is the return on average total assets?
The following figures are taken from Ethaniel Company's financial statements for the calendar years 200B and 200A:
200B
200A
Total Assets
$900,000
$750,000
Long-term debt (12% interest rate)
125,000
8% Preferred stocks, $100 par value
225,000
225,000
Total Stockholders' equity
600,000
550,000
Net Income (after tax of 30%)
70,000
550,000
What is the return on average total assets?
The Alpha Company had sales of $2,000,000, net operating income of $320,000 and average operating assets...
The Alpha Company had sales of $2,000,000, net operating income
of $320,000 and average operating assets of $575,000. What was the
return on investment? Round your percentage answer to the nearest
whole percent.
Answer:____________
ABC Industries is evaluating the amount of time between when a
customer places an order and when the order is shipped. For last
year, the following data was reported:
Inspection
time
0.3 days
Wait time
7.0 days
Process time
2.6 days
Move time
...
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for...
Margin, Turnover, Return on Investment, Average Operating
Assets
Elway Company provided the following income statement for the
last year:
Sales
$749,320,000
Less: Variable expenses
551,128,000
Contribution margin
$198,192,000
Less: Fixed expenses
198,192,000
Operating income
$0
At the beginning of last year, Elway had $38,624,000 in
operating assets. At the end of the year, Elway had $41,390,000 in
operating assets.
Required:
1. Compute average operating assets.
$
2. Compute the margin (as a percent) and
turnover ratios for last year. If...
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for...
Margin, Turnover, Return on Investment, Average Operating
Assets
Elway Company provided the following income statement for the
last year:
Sales
$859,290,000
Less: Variable expenses
540,984,000
Contribution
margin
$318,306,000
Less: Fixed expenses
195,596,000
Operating income
$122,710,000
At the beginning of last year, Elway had $38,662,000 in
operating assets. At the end of the year, Elway had $41,354,000 in
operating assets.
Required:
1. Compute average operating assets.
$
2. Compute the margin (as a percent) and
turnover ratios for last year. If...
For each transaction below, write the net effect on Current Assets (CA), Total Assets, Net Income...
For each transaction
below, write the net effect on Current Assets (CA), Total Assets,
Net Income Before Taxes (NI pretax), Cash flows from operating
activities (CFO), and Cash flows from investing activities
(CFI).
Write only the effect for the current period.
Assume the company is a merchandising firm.
If the net effect is negative, include a negative sign. If no
effect, write 0.
For CFO and CFI, positive net inflows are positive, net cash
outflows are negative.
For classifying interest...
Describe the differences between Return on Net Operating Assets (RNOA) and Return on Common Equity (ROCE)....
Describe the differences between Return on Net Operating Assets
(RNOA) and Return on Common Equity (ROCE). Include your opinion on
which metric is more beneficial to financial statement analysis. Be
sure to comment beyond discussing the formula for computing the two
ratios. Which metric is more beneficial to financial statement
analysis. Be sure to comment beyond discussing the formula for
computing the two ratios.
Holding assets constant, when debt decreases Net income increases and Stockholders' equity declines Net income and...
Holding assets constant, when debt decreases
Net income increases and Stockholders' equity declines
Net income and Stockholders' equity decline
Net income declines
and Stockholders' equity increases
Cannot be determined from the information provided
Net income and Stockholders' equity increase
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 3) You are rolling a 12 sided die 8 times. a) What is the size for...
- explain the difference between quantitative and qualitative research strategies. Provide an example of a crime based...
- use postorder and inorder tree traversals to make preorder traversal. #!/usr/bin/env python3 # encoding: UTF-8 """Turning...
- 1. Write an if-else statement to describe an object. Print "Balloon" if isBalloon is true and...
- An investor is considering purchasing a Treasury bond with a 20 year maturity, an 8% coupon...
- Write a program that copies the contents of one file to a destination file. This program...
- how to conduct a marketing mix for 3d crest white strips
ADVERTISEMENT