In an effort to analyze Clockwork Company finances, Jim realized that he was missing the company's net profits after taxes for the current year. Find the company's net profits after taxes using the following information Return on equity = 10.5% Debt ratio = 35% Total Asset Turnover = 2 Cost of Goods Sold = R110,000 Gross Profit Margin = 0.35 Sales = 161538.46

Return on equity = 10.5% Debt ratio = 35% Total Asset Turnover = 2 Cost of Goods Sold =…

Answered: In an effort to analyze Clockwork…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?
Red Spark Incorporated is interested in assessing the following scenarios on its indicators of profitability. Solve each scenario independently. a. Red Spark has taken significant steps to decrease expenses and expects its net income to increase by $8 million to $68 million. If its profit margin is 5.0%, what will the profit margin be after considering the decreased expenses? b. Red Spark has taken significant steps to decrease expenses and expects its net income to increase by $8 million to $68 million. If its average total assets are $494 million, what will its return on assets be?
(Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $700,000, cash flow from financing activities of $60,000, depreciation expenses of $40,000, and cash flow from operating activities of $600,000. a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011-2013: ($ million) 2011 Cash Flow from Operations $477 Capital Expenditures (CAPEX) $461 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? a. What is Kabutell's quality of earnings ratio? % (Round to one decimal place.) 2012 $403 $447 C 2013 $471 $455
Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million, depreciation expense was $3.80 million, interest payment on outstanding debt was $2.80 million, and the firm’s tax rate was 21%. What was the firm’s net income? Note: Enter your answer in millions rounded to 2 decimal places. What was the firm’s cash flow? Note: Enter your answer in millions rounded to 2 decimal places. What would happen to net income and cash flow if depreciation were increased by $2.80 million? Note: Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance. Would you expect the change in depreciation to have a positive or negative impact on the firm’s stock price? What would be the impact on net income if depreciation was $1 million and interest expense was $2 million? What would be the impact on cash flow if depreciation was $2.80 million and interest expense was $3.80 million? Note: Enter your…
Last year, Genten Company had sales of $7465 million. If Genten’s net profit margin was 0.41 and its return on assets was 0.37, what was Genten’s total assets?
Need Correct Answer of this Question
Last year, a company had $355,000 in assets, $26,275 of net income, and a debt-to-total-assets ratio of 44%. Now suppose the newly hired CFO convinces the president to increase the debt ratio to 58%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and therefore keep net income unchanged. What was the original return on equity (ROE) for this company?
Last year, Mason Inc. had a total assets turnover of 1.35 and an equity multiplier of 1.50. Its sales were $185,000, and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? ROE before cost savings: ___________%.? ROE after cost savings: ___________ %.? Improvement in ROE: ____________%?
Wims, Inc., has sales of $19.9 million, total assets of $14.9 million and total debt of $5.7 million. The profit margin is 12 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) C. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Net income a. b. ROA C. ROE % %
The following comparative information is available for Wildhorse Company for 2025. Sales revenue Cost of goods sold Operating expenses (including depreciation) Depreciation Cash paid for inventory purchases Your answer is partially correct. Net income $ eTextbook and Media * Your answer is incorrect. LIFO eTextbook and Media Net cash provided by operating activities * Your answer is incorrect. Determine net income under each approach. Assume a 30% tax rate. 18,200 Quality of earnings ratio Touthook and Media LIFO $92,000 35,000 26,000 LIFO 9,000 14,705 FIFO $92,000 Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis. 31,800 26,000 9,000 2.14 14,705 FIFO 23,940 LIFO Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, e.g. 5.15.) 39,005 FIFO FIFO 0.95 22,750
Sara is trying to analyze Henley Company finances but realizes that she was missing the company's net profits after taxes for the current year. Find the company's net profits after tax.ROA = 2.5%Total asset turnover = 0.5COGS = $105,000Gross profit margin = 0.30
HighTech Wireless just published its current income statement, which shows net income equal to $240,000. The statement also shows that operating expenses were $500,000 before including depreciation, depreciation was $100,000, and the tax rate was 40 percent. If HighTech has no debt, what were its sales revenues? What was its net cash flow?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

In an effort to analyze Clockwork Company finances, Jim realized that he was missing the company's net profits after
taxes for the current year. Find the company's net profits after taxes using the following information
Return on equity = 10.5%
Debt ratio = 35%
Total Asset Turnover = 2
Cost of Goods Sold = R110,000
Gross Profit Margin = 0.35
Sales = 161538.46