a) Calculate the return on assets. (Enter your answer as a percent rounded to 2 decimal places.) b) Calculate the operating profit margin. (Enter your answer as a percent rounded to 2 decimal places.) c) Calculate the sales-to-assets ratio. (Round your answer to 2 decimal places.)
a) Calculate the return on assets. (Enter your answer as a percent rounded to 2 decimal places.) b) Calculate the operating profit margin. (Enter your answer as a percent rounded to 2 decimal places.) c) Calculate the sales-to-assets ratio. (Round your answer to 2 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Q A B and C please
Transcribed Image Text:Exercise n°3.
Gil Corporation has current assets of $90,000 and current liabilities of
$180,000.
Required:
The following table gives abbreviated balance sheets and income
statements for Walmart.
Transcribed Image Text:Balance Sheet (figures in $ millions)
End of Year Start of Year
Assets
Current assets:
$ 6,756
5,614
43,783
3,511
$ 59,664
$ 6,867
5,835
43,046
1,941
$ 57,689
Cash and marketable securities
Accounts receivable
Inventories
Other current assets
Total current assets
Fixed assets:
$ 114,818 $ 114,178
30,040
$ 204,522 $ 198,825
Net fixed assets
Other long-term assets
26,958
Total assets
Liabilities and Shareholders' Equity
Current liabilities:
$ 41,433
25,495
$ 66,928
42,018
12,081
$ 126,653 $ 121,027
77,798
Total liabilities and shareholders' equity $ 204,522 $ 198,825
$ 46,092
32,429
$ 78,521
36,825
11,307
Accounts payable
Other current liabilities
Total current liabilities
Long-term debt
Other long-term liabilities
Total liabilities
Total shareholders' equity
77,869
Income Statement (figures in $ millions)
$ 500,343 $ 485,873
373,396
95,981
10,529
$ 20,437
2,178
$ 18,259
4,600
$ 13,659
6,124
$ 7,535
Net sales
361,256
91,773
10,080
$ 22,764
2,267
$ 20,497
7,174
$ 13,323
6,695
$ 6,628
Cost of goods sold
Selling, general, and administrative expenses
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Taxable income
Тах
Net income
Dividends
Addition to retained earnings
Assume a tax rate of 35%. Calculate the following using balance-sheet
figures from the start of the year and Income statement figures from
the end of the year:
a) Calculate the return on assets. (Enter your answer as a percent
rounded to 2 decimal places.)
b) Calculate the operating profit margin. (Enter your answer as a
percent rounded to 2 decimal places.)
c) Calculate the sales-to-assets ratio. (Round your answer to 2
decimal places.)
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