BrightStar Corp. reported the following December 31 amounts in its financial statements (dollars in thousands): Current Year: ⚫ Gross profit: $250 ⚫ Net income: $120 • Total assets: $1,500 ⚫ Total shareholders' equity: $1,000 Prior Year: . Total assets: $1,300 ⚫ Gross profit: $200 .Net income: $90 ⚫ Total shareholders' equity: $800 Calculate the return on assets for the current year and explain what this ratio indicates.

BrightStar Corp. reported the following December 31 amounts in its financial statements (dollars in thousands): Current Year: ⚫ Gross profit: $250 ⚫ Net income: $120 • Total assets: $1,500 ⚫ Total shareholders' equity: $1,000 Prior Year: . Total assets: $1,300 ⚫ Gross profit: $200 .Net income: $90 ⚫ Total shareholders' equity: $800 Calculate the return on assets for the current year and explain what this ratio indicates.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and the total operating expenses?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
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