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alance sheet and income statement shown below (in the picture) for Zenzo Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable

alance sheet and income statement shown below (in the picture) for Zenzo Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheet and income statement shown below (in the picture) for Zenzo Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable will be rolled over. Based on the balance sheet, find: 1. Profit margin 2. Return on invested capital 3. Operating margin
Balance sheet (mi llions of $2 Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Totai Assets 2500 11500 16000 30 000 20 000 50 000 Liabilities and equity. ACCounts payable ACcruals 9500 55 00 7000 Notes payable Total current liabilities 22 000 Long term bonds Totål lrabilities 15000 37 000 2000 Common stock Refained earnings Total common equity To tal liabilitier and equity // 000 13000 50 000 Income Stafement (milons op $) Net SQles Operating cotts except depreciation bepreciation Eamings bef interest and faxes (EBIT) 4156 Less interest Earnings before tax er CEBT) paxes Net income 87500 8/813 1531 1375 2781 973 I 808 0ther data S hares outstanding Cmillions ) Common diridends Int.rate on notes paya ble 4d-7 bonds Pederal plus state income tax rate Year end stoch price 500 3२. ३ 6.25 1. 35 /. 43.39
Transcribed Image Text:Balance sheet (mi llions of $2 Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Totai Assets 2500 11500 16000 30 000 20 000 50 000 Liabilities and equity. ACCounts payable ACcruals 9500 55 00 7000 Notes payable Total current liabilities 22 000 Long term bonds Totål lrabilities 15000 37 000 2000 Common stock Refained earnings Total common equity To tal liabilitier and equity // 000 13000 50 000 Income Stafement (milons op $) Net SQles Operating cotts except depreciation bepreciation Eamings bef interest and faxes (EBIT) 4156 Less interest Earnings before tax er CEBT) paxes Net income 87500 8/813 1531 1375 2781 973 I 808 0ther data S hares outstanding Cmillions ) Common diridends Int.rate on notes paya ble 4d-7 bonds Pederal plus state income tax rate Year end stoch price 500 3२. ३ 6.25 1. 35 /. 43.39
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