Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $350 Operating assets 720 Property, plant, and equipment 2,900 Other assets 145 Total assets $4,115 Current liabilities $920 Long-term debt 1,225 Other liabilities 155 Total liabilities $2,300 Paid in capital $375 Retained earnings 1,440 Total equity $1,815 Total liabilities and equity $4,115 Kiwi Fruit Company Income Statement Net sales $11,100 Cost of goods sold −8,900 Gross profit $2,200 Operating expense −920 Operating income 1,280 Other income 140 Net interest expense −200 Pretax income $1,220 Income tax −230 Net income $990 Earnings per share $1.20 Shares outstanding 825,000 Recent price $25.00 Kiwi Fruit Company Cash Flow Statement Net income $990 Depreciation and amortization 230 Increase in operating assets −120 Decrease in current liabilities −120 Operating cash flow $980 Net (purchase) sale of property $180 Increase in other assets −87 Investing cash flow $93 Net (redemption) issuance of LTD −$176 Dividends paid −174 Financing cash flow −$350 Net cash increase $723 Calculate ROA and ROE for Kiwi Fruit

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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Amounts are in thousands of dollars (except number of shares and price per share):

Kiwi Fruit Company Balance Sheet
Cash and equivalents	$350
Operating assets	720
Property, plant, and equipment	2,900
Other assets	145
Total assets	$4,115
Current liabilities	$920
Long-term debt	1,225
Other liabilities	155
Total liabilities	$2,300
Paid in capital	$375
Retained earnings	1,440
Total equity	$1,815
Total liabilities and equity	$4,115

Kiwi Fruit Company Income Statement
Net sales	$11,100
Cost of goods sold	−8,900
Gross profit	$2,200
Operating expense	−920
Operating income	1,280
Other income	140
Net interest expense	−200
Pretax income	$1,220
Income tax	−230
Net income	$990
Earnings per share	$1.20
Shares outstanding	825,000
Recent price	$25.00

Kiwi Fruit Company Cash Flow Statement
Net income	$990
Depreciation and amortization	230
Increase in operating assets	−120
Decrease in current liabilities	−120
Operating cash flow	$980

Net (purchase) sale of property	$180
Increase in other assets	−87
Investing cash flow	$93

Net (redemption) issuance of LTD	−$176
Dividends paid	−174
Financing cash flow	−$350
Net cash increase	$723

Calculate ROA and ROE for Kiwi Fruit

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