Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below.1. Starlight Company had the following data taken from its most recent financial statements:SalesInterest expense56,000500,000Total average assets2,000,000Total average liabilities1,200,000Total average stockholders' equity800,000Based on these data, calculate Starlight Company's return on total assets.Net income$3,200,000a. 8%b. 12.5%c. 27.8%d. 20.5

Return on total assets is calculated by dividing income before interest and tax by average total…

Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. Starlight Company had the following data taken from its most recent financial statements: Sales Interest expense Net income $3,200,000 a. 8% b. 12.5% c. 27.8% d. 20.5 56,000 500,000 2,000,000 1,200,000 800,000 Total average assets Total average liabilities Total average stockholders' equity Based on these data, calculate Starlight Company's return on total assets.

Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. Starlight Company had the following data taken from its most recent financial statements: Sales Interest expense Net income $3,200,000 a. 8% b. 12.5% c. 27.8% d. 20.5 56,000 500,000 2,000,000 1,200,000 800,000 Total average assets Total average liabilities Total average stockholders' equity Based on these data, calculate Starlight Company's return on total 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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Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $250,000 $225,000 $200,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 7% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 88,510 64,380 48,000 The 20Y7 net income was $25,250, and the 20Y6 net income was $17,500. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill…
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The following information was drawn from the accounting records of Jones Company. Net sales $276,923 Net income 90,000 720,000 Average total assets Average total liabilities Average total stockholders' equity 500,000 300,000 Based on this information, the company's net margin (also known as return on sales) is Multiple Choice 12.5%. 18.0% 32.5%. MacBook Air 80 888 DI DD F2 F3 F4 F5 F6 F7 F8 F9 #3 $ % & * 2 3 4 6. 7 8 9 W E Y
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What is the price earnings ratio for this company? Round your answer to one decimal point. Assets: Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total assets $295,000 Liabilities and Stockholders' Equity Current liabilities 60,000 Long-term liabilities 85,000 Stockholders' equity-common 150,000 Total liabilities and stockholders' equity $295,000 Income Statement Net sales $ 85,000Cost of goods sold…
A company's year-end selected financial data is shown below. Year 2 Year 1 Current assets $250,000 $175,000 Total assets 600,000 500,000 Total liabilities 300,000 225,000 Net sales 200,000 150,000 Net income 75,000 60,000 The company's rate of return on assets and rate of return on equity for Year 2 are: a. 12% and 22%, respectively. Ob. 13% and 25%, respectively. Oc. 14% and 26%, respectively. Od. 36% and 25%, respectively.
what does the percentages mean in vertical analysis? Year 4 % of Sales Year 3 % of Sales Assets Current Assets Cash $ 40,000 6.67 $ 36,000 6.67 Marketable Securities 20000 3.33 6000 1.11 Accounts Receivable 54000 9.00 46000 8.52 Inventories 135000 22.50 143000 26.48 Prepaid Items 25000 4.17 10000 1.85 Total Assets current 274000 45.67 241000 44.63 Investments 27000 4.50 20000 3.70 plant net 270000 45.00 255000 47.22 Land 29000 4.83 24000 4.44 Total Assets $ 600,000 100.00 $ 540,000 100.00 Liabilities and Stock equity Liabilities Current Liabilities Notes payable $ 17,000 2.83 $ 6,000 1.11 Accounts payable 113800 18.97 100000 18.52 salaries payable 21000 3.50 15000 2.78 Total current liabilities 151800 25.30 121000 22.41 Noncurrent liabilities…