The Dennis Company reported net income of $61,000 on sales of $410,000. The company has average...

The Dennis Company reported net income of $61,000 on sales of $410,000. The company has average total assets of $665,000 and average total liabilities of $210,000. What is the company's return on equity ratio?

Expert Solution

Answer:

Average Stockholder's Equity
                 = Average Total Assets (-) Average Total Liabilities
                 =     $ 665,000 (-) $ 210,000
                 =     $ 455,000

Return on equity ratio
                 =   Net Income / Average Stockholder's Equity
                 =    $ 61,000 / $ 455,000
                 =      13.4% (or) 13.41%

Return on equity ratio = 13.4% (or) 13.41%

ekkarill92 answered 2 years ago

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...

The 2021 income statement of Anderson Medical Supply Company reported net sales of $8 million

The 2021 income statement of Anderson Medical Supply Company reported net sales of $8 million, cost of goods sold of $4.8 million, and net income of $800,000. The following table shows the company’s comparative balance sheets for 2021 and 2020: Some industry averages for Anderson’s line of business are Inventory turnover ........................5 timesAverage collection period ............25 daysAsset turnover ..............................1.8 times Required:1. Determine the following ratios for 2021:a. Inventory turnoverb. Receivables turnoverc. Average collection periodd. Asset turnover2. Assess Anderson’s asset...

The office product division in Hulk Company reported $11,250 net operating income with $75,000 average operating...

The office product division in Hulk Company reported $11,250 net operating income with $75,000 average operating assets this year. The office product division has a new investment opportunity that would increase net operating income by $4,375 with $35,000 additional investment. (Q) Which of the following statements is TRUE given that the company's minimum required rate of return is 10%? If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the...

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 ...

Trevi Corporation recently reported an EBITDA of $31,400 and $9,500 of net income. The company has...

Trevi Corporation recently reported an EBITDA of $31,400 and $9,500 of net income. The company has $6,600 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense? Round to the nearest cent.

Trevi Corporation recently reported an EBITDA of $31,200 and $9,700 of net income. The company has...

Trevi Corporation recently reported an EBITDA of $31,200 and $9,700 of net income. The company has $6,700 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense?

Question 21 In 2012, MegaStores reported net income of $5.7 billion, net sales of $164.7 billion,...

Question 21 In 2012, MegaStores reported net income of $5.7 billion, net sales of $164.7 billion, and average total assets of $61.0 billion. What is MegaStores' asset turnover ratio? Question 21 options: A. 0.37 times B. 0.09 times C. 2.7 times D. 10.7 times Question 22 On January 2, 2012, York Corp. replaced its boiler with a more efficient one. The following information was available on that date: Purchase price of new boiler $170,000 Carrying amount of old boiler $10,000...

Globo-Chem Co. reported net sales of $600 million last year and generated a net income of...

Globo-Chem Co. reported net sales of $600 million last year and generated a net income of $132.00 million. Last year’s accounts receivable increased by $17 million. What is the maximum amount of cash that Globo-Chem Co. received from sales last year?

Jingo Company has reported $750,000 in sales (25,000 units) for last year with a net operating...

Jingo Company has reported $750,000 in sales (25,000 units) for last year with a net operating income of $25,000. At the break-even point, the company's total contribution margin equals $500,000. Based on this information, which of the following is correct? * a-The contribution margin ratio is 40%. b-The break-even point is 24,000 units. c-The variable expenses are 60% of sales. d-The variable expenses per unit are $9 per unit.

Question