Consider the following information for Handley Stores for 2020 and 2021: 2020 2021 Total assets $72,590,000 $68,832,000 Noninterest-bearing current liabilities 5,368,000 6,039,000 Net income 4,453,000 6,039,000 Interest expense 2,944,000 3,640,000 Sales 55,572,000 117,425,000 Tax rate 35% 35% X Your answer is incorrect. Compute ROI for both years. (Round answers to 2 decimal places, e.g. 15.32%.) 2020 2021 ROI 6.13 % 8.77 % * Your answer is incorrect. Break ROI down into profit margin and investment turnover. (Round answers to 4 decimal places, eg. 15.3215.) 2020 2021 Profit margin 8.01 5.14 Investment turnover 0.78 1.72

Consider the following information for Handley Stores for 2020 and 2021: 2020 2021 Total assets $72,590,000 $68,832,000 Noninterest-bearing current liabilities 5,368,000 6,039,000 Net income 4,453,000 6,039,000 Interest expense 2,944,000 3,640,000 Sales 55,572,000 117,425,000 Tax rate 35% 35% X Your answer is incorrect. Compute ROI for both years. (Round answers to 2 decimal places, e.g. 15.32%.) 2020 2021 ROI 6.13 % 8.77 % * Your answer is incorrect. Break ROI down into profit margin and investment turnover. (Round answers to 4 decimal places, eg. 15.3215.) 2020 2021 Profit margin 8.01 5.14 Investment turnover 0.78 1.72

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Consider the following information for Handley Stores for 2020 and 2021:
2020
2021
Total assets
$72,590,000
$68,832,000
Noninterest-bearing current liabilities
5,368,000
6,039,000
Net income
4,453,000
6,039,000
Interest expense
2,944,000
3,640,000
Sales
55,572,000 117,425,000
Tax rate
35%
35%
X Your answer is incorrect.
Compute ROI for both years. (Round answers to 2 decimal places, e.g. 15.32%.)
2020
2021
ROI
6.13 %
8.77 %
* Your answer is incorrect.
Break ROI down into profit margin and investment turnover. (Round answers to 4 decimal places,
eg. 15.3215.)
2020
2021
Profit margin
8.01
5.14
Investment turnover
0.78
1.72

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