Extracts from the financial statements of Persimmon are as follows:Statement of profit or lossStatement of financial position$'000230000.$2,000Operating profitFinance costsOrdinary sharesRevaluation surplusRetained earnings(15)215(15)200300Profit before tax1,2003,5001,000Income taxProfit for the year10% loan notesCurrent liabilities100Total equity and liabilities4,600What is the return on capital employed?

Formula for Return on Capital employed = {Profit before interest and tax / Capital Employed} × 100

Extracts from the financial statements of Persimmon are as follows: Statement of profit or loss Statement of financial position $'000 000.$ 2,000 Operating profit Finance costs 230 (15) 215 Ordinary shares Revaluation surplus Retained earnings 300 Profit before tax 1,200 3,500 1,000 Income tax (15) 200 Profit for the year 10% loan notes Current liabilities 100 Total equity and liabilities 4,600 What is the return on capital employed?

Extracts from the financial statements of Persimmon are as follows: Statement of profit or loss Statement of financial position $'000 000.$ 2,000 Operating profit Finance costs 230 (15) 215 Ordinary shares Revaluation surplus Retained earnings 300 Profit before tax 1,200 3,500 1,000 Income tax (15) 200 Profit for the year 10% loan notes Current liabilities 100 Total equity and liabilities 4,600 What is the return on capital employed?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Given the following information, what is the common-size growth in net income between Year 1 and Year 2? Yr1 Yr2 Sales $13,500 $15,000 COGS 8,100 9,000 Depreciation 1,200 1,500 Interest 1,000 1,100 Tax rate 35% 35% Dividend ratio 30% 30%
calculate: Debt ratio Interest coverage ratio Dividend yield current asset- 1.170.7 million inventory- 859.9 million currant liability- 885.8 million total dedt- 1.598.8 million total assets- 2.452.3 million operating profit- 1.230.5 million interest expense- 10,700 thousand
The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales Costs $9,300 7,330 Assets $20,000 Debt Equity $ 8,000 12,000 Net income $ 1,970 Total $20,000 Total $20,000 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $10,788. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed
ancial Statements Nataro, Incorporated, has sales of $676,000, costs of $338,000, depreciation expense of $82,000, interest expense of $51,000, and a tax rate of 24 percent. What is the net income for this firm? (Do not round intermediate calculations.) Net income
The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT Sales Costs Taxable income Taxes (22%) Net income $ 52,000 Assets 42,400 $ 9,600 2,112 $ 7,488 Total BALANCE SHEET Debt Equity Total Answer is complete but not entirely correct. External financing needed s 11,990 X $ 115,700 $ 115,700 $ 34,500 81,200 $ 115,700 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $ 78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 960,000 0 2,700,000 3,900,000 240,000 7,800,000 9,300,000 $ 17,100,000 $ 3,900,000 3,600,000 7,500,000 7,800,000 1,800,000 9,600,000 $ 17,100,000 $ 1,260,000 300,000 1,800,000 2,400,000 180,000 5,940,000 8,940,000 $ 14,880,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 $ 14,880,000 Sales (all on account) Lydex Company Comparative Income Statement and Reconciliation This Year $ 15,750,000 12,600,000 3,150,000 1,590,000 Last Year $ 12,480,000 9,900,000 2,580,000 Cost of goods sold Gross margin Selling and…
Selected current year company information follows: Net income Net sales Total liabilities, beginning-year Total liabilities, end-of-year $ 16,553 718,855 89,932 109,201 Total stockholders' equity, beginning-year 204,935 Total stockholders' equity, end-of-year 130,851 What is the return on total assets? (Do not round intermediate calculations.).
Required information [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 431,313 $ 330,421 259,650 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes. Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets 171,663 61,246 38,818 100,064 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 209,156 121,265 KORBIN COMPANY Comparative Balance Sheets 71,599 13,317 $ 58,282 $ 37,039 2021 45,598 29,077 74,675 46,590 9,551 $ 54,729 0 103,218 $ 157,947 $ 2019 229,300 146,752 82,548 30,268 19,032 49,300 33,248 6,749 $ 26,499 $ 19,550 71,000 8,875 31,781 2019 2020 $36,630 $ 48,966 700 93,876 $131,206 $ 108,704 4,660 55,078 $ 19,023…
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
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.
Presented below is the income statement of Coming Company: Sales Cost of goods sold Gross profit Operating expenses Income before income taxes $305,000 180,000 $125,000 68,000 57,000 21,400 $35,600 Income taxes Net income In addition, the following information related to net changes in working capital is presented: Cash Accounts receivable Inventories Salaries payable (operating expenses) Accounts payable Income tax payable Debit $9,600 10,000 $15,620 6,400 9,500 2,400 Credit The company also indicates that depreciation expense for the year was $12,360 and that the deferred tax liability account increased $3,080. Required: (a) Compute the net cash flow from operating activities that would be shown on a statement of cash flows using the indirect method. (b) Compute the net cash flow from operating activities that would be shown on a statement of cash flows using the direct method. P47 PPT (c) State the major difference between the two methods in handling statement of cash flows.