From the below ratios provide a brief explanation about the profitability of Snick’s board shop.5.1 Profitability ratios: - Return on assets 0.10cents- Return on equity 0.71cents- Profit margin 0.21cents- Gross margin 54.29%

Profitability ratios refer to the refers to those ratios which evaluate the potential or capability…

Answered: bility ratios: - Return on assets…

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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2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Profitability Ratios Current Yr. Prior Yr. Fav/Unfav. Gross Margin (%) {Gross Income/Sales Revenue} Profit Margin (%) {Net income/ Sales Revenue} Return on Assets (%) {Net Income/ Average Total Assets}
Prepare common size income statements Which company earns more net income? Which companies net income has a higher percentage of its net sales revenue?
Profit Margin The following data are from the financial statements of Burkee Wines, Inc. Total revenues: 53,500,000 Total expenses: $2,800,000 What is the company's profit margin ratio? Note: Round answer to one decimal place. if necessary. (ex: 10.8%)
I need help to determine the following; 5. For P & B Manufacturing to assess its profitability I need help to calculate the net profit margin percentage AND the return on equity. Include calculations and round answers to 2 decimal places.
Given below are the account balances for Charlie Company: Gross sales - $92,000 Sales returns and allowances - $6,000 Selling expenses - $12,000 Cost of goods sold - $42,000 Interest expense - $3,000 How much is the gross profit margin?
Efficiency ratio: Bummel and Strand Corp. has a gross profit margin of 33.7 percent, Sales of $47,112,365, and inventories of $14,595,435. What is its inventory turnover ratio?
Complete the comparative income statement and balance sheet for Logic Company. Note: Input all answers as positive values except decrease answers which should be indicated by a minus sign. Round your "percent" answers to the nearest hundredth percent.
Complete this question by entering your answers in the tabs below. Analysis Analysis Bal Sheet Inc Stmt Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) Revenues Sales (net) Other revenues Total revenues Expenses Cost of goods sold FANNING COMPANY Vertical Analysis of Income Statements Year 4 Selling, general, and administrative expense Interest expense Income tax expense Total expenses Net income Amount $ 231,900 9,300 241,200 118,800 54,200 6,800 22,800 202,600 $ 38,600 Percentage of Total Analysis Bal Sheet % % Year 3 Amount $ 211,200 6,400 217,600 102,100 49,100 6,000 21,800 179,000 $ Percentage of Total % % 38,600 Analysis Inc Stmt > Show less
The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes LANCASTER CORPORATION a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 223,000 155,000 $ 68,000 33,100 $ 34,900 13,400 $ 21,500 7,525 $ 13,975
In a common-sized income statement, 100% is the a. net cost of goods sold b. gross profit c. sales d. net income
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Determine the gross margin percentage and the profit margin percentage. (Round answers to 2 decimal places, e.g. 52.75%.) Gross margin percentage Profit margin percentage 35.28 % %

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5.1 Profitability ratios:
- Return on assets	0.10	cents
- Return on equity	0.71	cents
- Profit margin	0.21	cents
- Gross margin	54.29	%

bility ratios: - Return on assets 0.10 cents - Return on equity 0.71 cents - Profit margin 0.21 cents - Gross margin 54.29