Answered: 3. Spark Co’s calculated the following…

3. Spark Co’s calculated the following ratios for one of its profit centers : Gross Margin 30% Capital turnover 5 times Return on sales 25%. Return on assets was a. 25% b. 20% c. 125% d. 12.5%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A firm has an ROA of 7.4%, sales of $80, and total assets of $100. What is its profit margin? O…

A: We need to use the following two ratios for calculation of profit margin first we need to calculate…

Q: The Central Division for Chemical Company has a return on investment of 20% and an investment…

A: Definition: Profit margin: This ratio gauges the operating profitability by quantifying the amount…

Q: Bottlebrush Company has operating income of $59,385, invested assets of $321,000, and sales of…

A: Profit Margin = Net income Sales ×100 Asset Turnover =…

Q: Richard's Sporting Goods reports net income of $180,000, net sales of $530,000, and average assets…

A: The return on assets is calculated as ratio of net income and average assets.

Q: If Net sales $200,000, Cost of goods sold 90,000, Operating expenses 80,000, Net income10,000, Total…

A: Operating Income = Net Sales - Cost of goods sold - Operating expenses = $200,000 - $90,000 -…

Q: DuPont Analysis If Epic, Inc. has an ROE = 18%, equity multiplier = 4.7, a profit margin of 11.3%,…

A: ASSETS TURNOVER RATIOAssets Turnover Ratio is the ratio between Net Sales and Average Total Assets.…

Q: The Central Division for Chemical Company has a return on investment of 30% and an investment…

A: Return on investment can be calculated by multiplying the profit margin by investment turnover. So…

Q: k ces Required: a. Firm D has net income of $91,936, sales of $1,436,500, and average total assets…

A: Margin is calculated by dividing net income by sales revenue. Turnover is calculated by dividing…

Q: Suppose we have the following information: Sales = $112,851 Assets = $131,468 Net profit margin…

A: Return on equity is the ratio of net income to the value of equity. Return on equity measures the…

Q: Bottlebrush Company has income from operations of $66,410, invested assets of $229,000, and sales of…

A: ROI stands for Return on Investment, it is the ratio which is used to compute the gain or loss of…

Q: Common Size Analysis

A: First option is wrong because in horizontal analysis, the items of financial statements are compared…

Q: What is the equity multipier on 4% profit margin, a total asset turnover of 2 and return on equity…

A: Profit Margin = Net Income / Net Sales Total Asset Turnover Ratio = Net Sales / Total Assets…

Q: The income statement, statement of retained earnings, and balance sheet for Somerville Company are…

A: Introduction: Return on sales : Division of Net sales with Net income derives the Return on sales.

Q: 10. Kragle Corporation reported the following financial data for one of its divisions for the year;…

A: Ratio analysis is a technique of analysis of the financial statements by computing various ratios.…

Q: Assume a company reported the following results: Sales Net operating income Average operating assets…

A: Return on investment = Net operating income/Average operating assets Net operating income = Average…

Q: Compute Return on assets ratio if Net Income:2.026 ; Sales:17.193 ;Total Assets: 31.483 ; Total…

A: Return on Assets is the financial ratio that shows the profitability of the company with respect to…

Q: A company had net income of $2,680,000, net sales of $25,100,000, and average total assets of…

A: The return on total assets ratio measures how efficiently a particular company uses its assets to…

Q: A firm total assets turnover ratio increased from 1.5 to 2.0 it's profit margin (PBIT margin)…

A: Asset turnover ratio is the ratio of sales revenue to total assets of the business, it means how…

Q: Given financial information of MEM's Merchandising Co.: Average accounts receivable = P90,000.00,…

A: Net sales = P 2,000,000 Gross profit margin = 25% Average accounts payable = P 700,000

Q: Required: a. Firm D has net income of $39,000, sales of $1,300,000, and average total assets of…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Required: a. Firm D has net income of $26,500, sales of $970,000, and average total assets of…

A: Profit Margin :— It is calculated by dividing net income by sales during the period. Turnover :—…

Q: Marino Company has provided the following information: Net sales, $480,000 Net income, $24,000…

A: NET INCOME MARGIN Net Income Margin is the Ratio between Net Income During the Year & Net…

Q: Use the following information to answer question 4-5. Operating data of Peter Company for last year…

A: 4. Turnover = sales / Average operating assets 1.5 = $900,000 / Average operating assets…

Q: Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales…

A: An income statement is a financial statement that a company prepares quarterly or annually to show…

Q: Complete the balance sheet and sales information in the table that follows for J. White Industries…

A: Note 1: Total liabilities-to-assets ratio: 45% Total liabilities/Total assets= 45% Total…

Q: A firm with current assets of $85,750 and current liabilities of $62,958 would have:

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is…

A: ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier Where, Net Profit…

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: 15. Firm A has a total asset turnover ratio of 4.4, a net profit margin of 0.11, and return on…

A: Total Assets Turnover Ratio :— It is calculated by dividing net sales revenue by average total…

Q: The Wilson Corporation has the following relationships: Sales/Total assets 2…

A: Sales/Total assets=Asset turnover=2Return on assets (ROA)= 6%Return on equity (ROE)= 9%

Q: to compute the return on investment, and show (a) the profit margin, (b) the investment turnover,…

A: Answer : Operating income = $58,328 Invested assets = $317,000 Sales = $729,100 a) Profit margin…

Q: Required: a. Firm D has net income of $54,000, sales of $1,200,000, and average total assets of…

A: Margin is calculated by dividing net income by sales revenue. Turnover is calculated by dividing…

Q: Operating profit margin is 8.65%. Sales to assets ratio is 3.20. Assets are 630,000. Equity is…

A: Net income is the amount of money that an entity earned after deducting all the expenses from the…

Q: Harmony Haven Gifts has sales of $810,200, total assets of $577,900, and a profit margin of 4.3…

A: Sales = s = $810,200Total Assets = ta = $577,900Profit Margin = pm = 4.3%

Q: The Merriam Company has determined that its return on equity is 15 percent. Management is interested…

A: Profit margin is the ratio between net income and sales revenue. It is calculated by dividing net…

Q: ompute Profit Margin if Net İncome:2.026 ; Sales:17.193 ;Total Assets: 31.483 ; Total Equity:…

A: Given information : Net İncome = 2.026 Sales = 17.193 Total Assets = 31.483 Total Equity = 12.804

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: When vertical analysis is applied to the income statement of a business with a net sales of TL…

A: The income statement is the most important financial document issued by a business entity. This…

Q: Briggs Company has operating income of $13,824, invested assets of $96,000, and sales of $230,400.…

A: a. Profit margin; Profit margin=Income from operationsSales×100=$13,824$230,400×100=6%

Q: Margin, Turnover, Return on Investment Pelak Company had sales of $4,974,000, expenses of…

A: Operating income = Sales - expenses Margin = Operating income / Sales Turnover = Sales / Average…

Q: Du Pont Analysis Keller's Cosmetics manitains an operating profit margin of 5% and an asset turnover…

A: Given information in question operating profit margin = 5% asset turnover ratio =3. Calculation of…

Q: The Central Division for Chemical Company has a return on investment of 21% and an investment…

A: Profit margin is the return on investment divided by the investment turnover.

Q: A company had a profit margin of 15%. If net income equaled $44,000 and average total assets equaled…

A: Lets understand the basics. For calculating net sales, we need to use below formula. Profit margin =…

Question

3. Spark Co’s calculated the following ratios for one of its profit centers :

Gross Margin 30% Capital turnover 5 times

Return on sales 25%. Return on assets was

a. 25% b. 20% c. 125% d. 12.5%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Perform a vertical analysis...
Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $17,800, invested assets of $89,000, and sales of $178,000. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1 % b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3 %
explain image below
Led Zeppelin, Inc. Sales $34,000,000 Gross profit margin Operating profit margin Net profit margin Return on total assets 84% 33% 8% 16.8% 21% Return on common equity Total asset turnover 2.1 Average collection period (days) 53.5 Calculate values for the following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable
IF XZX has the following data:Profit margin 2%Return on Asset 4%Sales revenues $500,000What is the company Total assets ? O a. $500,000 O b. $300,000 O c. $250,000 O d. $100,000
Fields Company presented the following data for the current year: Net sales revenue $275,000 Cost of goods sold 125,000 Operating expenses 40,000 Income tax rate 25% Determine the company's profit margin (rounded) A Select one: O O a. 33% b. 31% C. 28% d. 30%
Bottlebrush Company has operating income of $49,749, invested assets of $309,000, and sales of $710,700. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit margin % b. Investment turnover c. Return on investment %
A company has net income of $300,000, net sales of $2,500,000, and total assets of $2,000,000. Its return on total assets equals a. 6.7%. c. 8.3%. e. 15.0%. b. 12.0%. d. 80.0%.
4-3 DUPONT ANALYSIS Henderson's Hardware has an ROA of 11%, a 6% profit margin, and an ROE of 23%. What is its total assets turnover? What is its equity multiplier?
Operating data from Tindall Company for last year follows: Sales.... $900,000 $500,000 Stockholders' equity Return on investment. 12% Average operating assets 2 Turnover. Residual income. Minimum required rate of return.... Total assets The average operating assets amounted to: Select one: a. $600,000 b. $400,000 c. $500,000 d. $800,000 1.5 ? 10% $800,000
What is the return on assets of The Big Show Inc. that has sales of $428,300, total assets of $389,100, and a profit margin of 7.2 percent? Multiple Choice 7.01 percent 6.30 percent 6.54 percent 7.93 percent 6.83 percent
3