ht ences Net sales Net income Average shareholders' equity Average total assets Required: 1. Compute ROA for the current and prior years. 2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Compute ROA for the current and prior years. Note: Round your answers to 3 decimal places. Current Year Prior Year ROA Current Year $ 1,139,248 5,966 (307,335) 653,309 Net sales Net income Average shareholders' equity Average total assets Prior Year $ 1,187,871 3,544 (205,984) 589,897 Current Year $ 1,139,248 5,966 (307,335) 653,309 Increase Decrease Prior Year $ 1,187,871 3,544 (205,984) 589,897 Required: 1. Compute ROA for the current and prior years. 2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Q 9

ht
ences
Net sales
Net income
Average shareholders' equity
Average total assets
Required:
1. Compute ROA for the current and prior years.
2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute ROA for the current and prior years.
Note: Round your answers to 3 decimal places.
Current Year Prior Year
ROA
Net sales
Net income
Average shareholders' equity
Average total assets
Current Year Prior Year
$ 1,139,248
5,966
(307,335)
653,309
$ 1,187,871
3,544
(205,984)
589,897
Required 1
Current Year
$ 1,139,248
5,966
(307,335)
653,309
Required:
1. Compute ROA for the current and prior years.
2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?
Required 2
Increase
Decrease
Prior Year
$1,187,871
Complete this question by entering your answers in the tabs below.
3,544
(205,984)
589,897
Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?
Transcribed Image Text:ht ences Net sales Net income Average shareholders' equity Average total assets Required: 1. Compute ROA for the current and prior years. 2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute ROA for the current and prior years. Note: Round your answers to 3 decimal places. Current Year Prior Year ROA Net sales Net income Average shareholders' equity Average total assets Current Year Prior Year $ 1,139,248 5,966 (307,335) 653,309 $ 1,187,871 3,544 (205,984) 589,897 Required 1 Current Year $ 1,139,248 5,966 (307,335) 653,309 Required: 1. Compute ROA for the current and prior years. 2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Required 2 Increase Decrease Prior Year $1,187,871 Complete this question by entering your answers in the tabs below. 3,544 (205,984) 589,897 Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education