Maggie’s Skunk Removal Corp.’s 2021 income statement listed netsales of $14.4 million, gross profit of...

Maggie’s Skunk Removal Corp.’s 2021 income statement listed net sales of $14.4 million, gross profit of $9.40 million, EBIT of $7.5 million, net income available to common stockholders of $5.1 million, and common stock dividends of $3.1 million. The 2021 year-end balance sheet listed total assets of $54.4 million and common stockholders' equity of $22.9 million with 2.0 million shares outstanding.

Calculate the return on assets. (Round your answer to 2 decimal places.)

Calculate the return on equity. (Round your answer to 2 decimal places.)

Calculate the dividend payout. (Round your answer to 2 decimal places.)

Expert Solution

Part A:

ROA = Net Income / Assets

= $ 5.1 M / $ 54.4 M

= 0.09375 I.e 9.375%

Part B:

ROE = Net Income / Equity

= $ 5.1 M / $ 22.9 M

= 0.2227 I.e 22.27%

Part C:

Div payout = Div / earnings

= $ 3.1 M / $ 5.1 M

= 0.6078 I.e 60.78%

jeff jeffy answered 2 years ago

Maggie’s Skunk Removal Corp.’s 2021 income statement listed net sales of $12.6 million, gross profit of...

Maggie’s Skunk Removal Corp.’s 2021 income statement listed net sales of $12.6 million, gross profit of $7.10 million, EBIT of $5.7 million, net income available to common stockholders of $3.3 million, and common stock dividends of $1.3 million. The 2021 year-end balance sheet listed total assets of $52.6 million and common stockholders' equity of $21.1 million with 2.0 million shares outstanding. Calculate the gross profit margin. (Round your answer to 2 decimal places.) Calculate the operating profit margin. (Round your...

Maggie’s Skunk Removal Corp.’s 2018 income statement listed netsales of $12.6 million, gross profit of...

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $12.6 million, gross profit of $7.10 million, EBIT of $5.7 million, net income available to common stockholders of $3.3 million, and common stock dividends of $1.3 million. The 2018 year-end balance sheet listed total assets of $52.6 million and common stockholders' equity of $21.1 million with 2.0 million shares outstanding.Calculate the return on assets. (Round your answer to 2 decimal places.) Calculate the return on equity. (Round your answer...

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $13.8 million, gross profit of...

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $13.8 million, gross profit of $8.70 million, EBIT of $6.9 million, net income available to common stockholders of $4.5 million, and common stock dividends of $2.5 million. The 2018 year-end balance sheet listed total assets of $53.8 million and common stockholders' equity of $22.3 million with 2.0 million shares outstanding. 1) Calculate the gross profit margin. (Round your answer to 2 decimal places.) 2) Calculate the operating profit margin....

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $12.5 million, gross profit of...

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $12.5 million, gross profit of $6.9 million, EBIT of $5.6 million, net income available to common stockholders of $3.2 million, and common stock dividends of $1.2 million. The 2018 year-end balance sheet listed total assets of $52.5 million and common stockholders’ equity of $21 million with 2 million shares outstanding. Calculate the gross profit margin. (Round your answer to 2 decimal places.) Calculate the operating profit margin. (Round your...

Haag Corp.'s 2021 income statement showed pretax accounting income of $2,500,000. To compute the federal income...

Haag Corp.'s 2021 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2021 data are provided: Income from exempt municipal bonds $ 100,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes 200,000 Estimated federal income tax payments made 330,000 Enacted corporate income tax rate 20% Prepare the accounting entry on Haag Corp’s books for 2021

How to explain and classify income statement revenue, gross profit, and net income?

Prepare an income statement through gross profit for the year ended November 30, 2014.

At the end of Ermler Department Store’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance. Freight-In ………… $ 5,060 Inventory (beginning)…….. 41,300 Purchases………….. 613,000 Purchase Discounts……….. 7,000 Purchase Returns and Allowances… 6,760 Sales Revenue……….. 902,000 Sales Returns and Allowances….. 20,000 Additional facts: 1. Inventory on November 30, 2014, is $36,200. 2. Note that Ermler Department Store uses a periodic system. Instructions Prepare an income statement through gross profit for the year ended November 30,...

Prepare an income statement for the year ended December 31, through the gross profit for Baxter...

Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information: Baxter Company sold 8,600 units at $145 per unit. Normal production is 9,000 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.) Standard: 5 yards per unit at $6.30 per yard Actual yards used: 43,240 yards at $6.25 per yard Standard: 2.00 hours per unit at $15.00 Actual hours worked: 16,950 at $14.90...

Income Statement Sales $5 million -COGS -4.2 million There are 50,000 shares of c.s. outstanding Gross Profits...

Income Statement Sales $5 million -COGS -4.2 million There are 50,000 shares of c.s. outstanding Gross Profits 800,000 -Operating Expenses -350,000 Operating Profit 450,000 -Interest -125,000 EBT 325,000 -Taxes -97,500 EAT 227,500 Balance Sheet Cash $100,000 Current liabilities $480,000 Acct. Rec. $300,000 Bonds $1.5 million Inventory $800,000 Common stock $500,000 Fixed Assets $2 million Paid-in Capital $600,000 Total Assets $3.2 million Retained Earnings $120,000 Total Liabilities & Stockholders Equity $3.2 million 1. Based on the financial statements, calculate: A. Current ratio ...

Profit and Loss Statement 2018 Revenue 34,290 percent of growth 0.0% Gross Profit 34,290 Gross Margin...

Profit and Loss Statement 2018 Revenue 34,290 percent of growth 0.0% Gross Profit 34,290 Gross Margin 100% SGA Costs (2,500) EBITDA 31,790 EBITDA Margin 92.7% Depreciation (7,500) % of Sales -21.9% EBIT 24,290 EBIT Margin 70.8% Interest (2,500) % of Sales -7.3% EBIT 21,790 EBIT Margin 63.5% Net Income 21,790 Net Income Margin 63.5% Balance Sheet 2017 2018 Cash 9,000 12,000 Inventory 0 0 A/R 0 3,179 Current Assets 9,000 15,179 Fixed Assets 747,300 763,800 Total Assets ...

Question