Please provide this question solution general accounting Based on the following data:Net income$240,000Preferred dividends $60,000Interest expenseInterest income$120,000$40,000Average total assets $1,000,000What is the rate earned on total assets?A. 36%B. 28%C. 18%D. 30%

Step 1: Define Return on AssetReturn on asset compares the value of business assets with the total…

Answered: Based on the following data: Net income…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 20E

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General Accounting question
Income Statement Sales CGS Depr EBIT Interest EBT Taxes Net Income Div Add to RE Balance Sheet Cash AR Inven Current Assets Net Fixed Assets Total Assets AP NP Accrued Wages Current Liab LTD Common Stock Retained Earnings Total Common Eq T. Liab & Equity Year 0 $8,000 1.25 5,000 1.25 600 1.25 $2,400 200 $2,200 550 Use 25% $1,650 $1,200 $ 450 AFN $400 1.25 600 1.25 500 1.25 $1,500 2.500 1.25 $4,000 $ 100 200 100 $ 400 800 1,500 70 1.300 $2,800 $4,000 1" Pass Forecast Year 10,000 200 500 750 625 1875 3,125 5,000 200 2nd Pass Forecast Year 10,000 500 750 625 1875 3,125 5,000 200 1. Calculate the proforma income statement and balance sheet assuming 25% growth (use the constant growth method and assume the company is at full capacity). Assume additional funds needed will come from 60% LTD and 40% from a common stock issue. Interest on the debt is 9% and the common stock will sell for $30 per share and pay $1.00 per share in dividends. (Use balance sheet and income statement on page 1)
From the following information for BlueInks Corporation, compute the rate of return on assets. Hint: The numerator is income before interest expense and taxes. Net income $40,878 Total assets at beginning of year $250,100 Total assets at end of year $158,680 a. 15% b. 25% c. 16% d. 20%
Sub: financial accounting
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You are given the following income statement and balance sheet: Income Statement Sales EBT Taxes (40%) Net Income Cash A/R Inventories Total CA Fixed Assets Total Assets $15,000 $800 $320 $480 Balance Sheet $100 $2,000 $4.000 Accounts Payable Debt Common Stock Retained Eamings $6,100 $1,900 $8,000 Total Claims $1,000 $4,000 $2,000 $1,000 $8,000 Now make the following forecast and assumptions for the upcoming year: Sales are expected to increase by $5.400 over the coming year. All assets and accounts payable can be expressed as a percentage of sales. The firm's profit margin will remain at 3.2 percent. The firm has a dividend payout rate of 75 percent. Using the equation method, determine the additional funds needed for the coming yea
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Extracts from the financial statements of Persimmon are as follows: Statement of profit or loss Statement of financial position $'000 230 000.$ 2,000 Operating profit Finance costs Ordinary shares Revaluation surplus Retained earnings (15) 215 (15) 200 300 Profit before tax 1,200 3,500 1,000 Income tax Profit for the year 10% loan notes Current liabilities 100 Total equity and liabilities 4,600 What is the return on capital employed?
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Based on the following data: Net income $240,000 Preferred dividends $60,000 Interest expense Interest income $120,000 $40,000 Average total assets $1,000,000 What is the rate earned on total assets? A. 36% B. 28% C. 18% D. 30%