JC Goods, Inc. has a profit margin of 10% and a total assets turnover of 0.30. The president believes that the existing return on assets might be quadrupled and is dissatisfied with it. One way to do this is by raising the profit margin to 15%, and another is by raising the total assets turnover. What new asset turnover ratio is necessary to double the return on assets in addition to the 15% profit margin? a. 35% b. 45% c. 40% d. 50

Q: Solano Company has sales of $620,000, cost of goods sold of $430,000, other operating expenses of…

A: Answer:-  Return on investment meaning(ROI):- ROI is a basically a measure of an investment's…

Q: Loreto Incorporated has the following financial ratios: asset turnover = 2.00; net profit margin…

A: Here,asset turnover = 2.00Net profit margin = 7%Payout ratio = 30%Equity/ assets = 0.60To Find:Part…

Q: Thorpe Mfg., Inc., is currently operating at only 85 percent of fixed asset capacity. Current sales…

A:

Q: Williams & Sons last year reported sales of $25 million, cost of goods sold (COGS) of $20…

A: The objective of this question is to calculate the amount of cash that will be freed up by Williams…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year…

A: A balance sheet is a financial statement that reports a company's assets, liabilities, and…

Q: Given the following data for a company, what are their total liabilities?       Profit margin = 5%…

A: We need to use balance sheet equation to solve this problem Shareholder's equity +Total liabilities…

Q: SJU Resources last year reported cost of goods sold of $35 million and an inventory turnover ratio…

A: Inventory turnover ratio means the cost of goods sold divided with average stock.

Q: Lloyd Inc. has sales of $150,000, a net income of $16,500, and the following balance sheet: ROE wil…

A: We have undertake a transaction bring the current ratio to the target level. This will result into…

Q: A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio…

A: Return on equity is a ratio which measures the return to company in terms of equity. It indicates…

Q: Saddie & Co.'s return on assets (ROA) for the current year was 6.23%. Which of the following is true…

A: Return on assets is the ratio between income and average assets. It is calculated by dividing…

Q: The Manning Company has financial statements as shown next, which are representative of the…

A: Answer:- 1. Profit margin = (Net income / Sales) x 1002. Dividend payout ratio = (Total dividend /…

Q: he return on equity was barely 3% but the managers prepared a plan to improve the situation. It…

A: Return on equity is net profit computed as a percentage of total equity.

Q: Kanye West makes shoes. Current sales of Yeezy shoes are $52,000. Kanye West's average operating…

A: Return On Investment (ROI) compares the amount of money that investment brings into your business to…

Q: A firm wishes to maintain an internal growth rate of 7.9 percent and a dividend payout ratio of 20…

A: The total asset turnover refers to the measure of the efficiency of the company in generating…

Q: Hal's Ice Cream Stands $ Thousands Assets Cash and cash equivalents Accounts receivable Inventories…

A: The question is related to Information regarding yea 2022 based the financial statements provided…

Q: Consider a retail firm with a net profit margin of 3.61 % a total asset turnover of 1.75​, total…

A: Step 1: The calculation of the return on equity AB1Net profit margin3.61%2Total asset…

Q: A firm wishes to maintain an internal growth rate of 8.25 percent and a dividend payout ratio of 37…

A: Given :  Internal Growth Rate8.25%Dividend Payout ratio3.70%Current Profit margin = 5.9%

Q: Aqua Corp. is considering a change in marketing strategy which would cost $100,000 per year…

A: The cash conversion cycle shows that how effectively the company's managers deal with their working…

Q: Williams & Sons last year reported sales of $73 million, cost of goods sold (COGS) of $60 million,…

A: The inventory turnover ratio has increased which shows that the company is selling the goods…

Q: A firm wishes to maintain an internal growth rate of 6.4 percent and a dividend payout ratio of 25…

A: Here,InternalGrowth Rate is 6.4%Profit Margin is 5.7%Dividend Payout Ratio is 25%

Q: Which of the following calculations is correct if sales are $25,000, operating profit after tax is…

A: Profitability analysis is a financial practice that measures a firm's efficiency in generating…

Q: Wie Corp's sales last year were $260,000, and its year-end total assets were $360,000. The average…

A: The objective of the question is to find out by how much the assets of Wie Corp must be reduced to…

Q: Inc. has a total asset turnover of 0.45, an equity multiplier of 2.5 and a profit margin of 10.2.…

A: Calculation of new debt ratio: Answer: New debt ratio of the company is 0.37 Given information:…

Q: Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier…

A: Sustainable growth rate is used to estimate cash flows projections and for taking decision about…

Q: Required: a1. Produce an income statement for 2020. Assume that net working capital will equal 50%…

A: Information Provided: Increase in net fixed assets = $200,000 Revenues to Total assets = 1.50 Annual…

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: Mak Cosmetics maintains an operating profit margin of 10% and asset turnover ratio of 2.5. If Mak…

A: ROE:Return on equity can be referred as the measure of return on equity where the net income of the…

Q: Solano Company has sales of $740.000, cost of goods sold of $490,000, other operating expenses of…

A: Return on investment = Net profit/Average invested assets Investment turnover = Net sales/Average…

Q: The firm's current ratio is 2.1. the firm plans to acquire additional inventory to meet a surge in…

A: The pre-determined proportion of current assets and current liabilities is known as the targeted…

Q: Using the percent-of-sales method, determine whether the company has external financing needs, or a…

A: External Financing Needed: It refers to the additional funds required by the company or…

Q: An unlevered firm perceives its optimal dividend policy to be a 40 percent payout ratio. Asset…

A: Sustainable growth rate= Asset turnover* Profit margin * (1- dividend payout ratio) = 80%*10%*60% =…

Q: You are given the following information for Hendrix Guitars, Incorporated: Profit margin Total asset…

A: Sustainable growth rate is that growth which can be obtained without any additional funding required…

Q: 7. Wagner Inc. has $200 in current assets and $125 in current liabilities. Inventory before any…

A: Current ratio is one of liquidity ratio being used in business. This shows how much current or short…

Q: You've collected the following information about Hendrix Guitars, Incorporated: Profit margin Total…

A: The problem case focuses on calculating the sustainable growth rate for the firm. A sustainable…

Q: Assume that the Profit Margin for Teebow, Inc., is 4.92%. The company's Total Asset Turnover is 1.8…

A: Return on equity is the return provided to the equity shareholders of the company. The return on…

Q: Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net…

A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

Q: Total asset turnover Profit margin Equity multiplier Payout ratio 2.5 5.2% 1.3 22% "hat is the…

A:

Q: 17 The Manning Company has financial statements as shown next, which are representative of the…

A: External resources are those that come from a source outside the company and are used to boost cash…

Q: Nutty sales last year were 15, 000 , and its year-end total assets were P355,000. The average firm…

A: The asset turnover ratio measures the efficiency of a company's assets in generating sales.

Q: Allen Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales…

A:

Q: Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier…

A: As per DuPont equation, the return on equity is

Q: The following tables contain financial statements for Dynastatics Corporation. Although the company…

A: Solution Balance sheet is a statement of  business assets , liabilities and owners equity as of any…

Q: The best example of a well-stated, specific financial objective is to increase ROA (return on asset)…

A: Financial objective is to achieve and measure the financial performance of the company and increase…

Q: Red Spark Incorporated is interested in assessing the following scenarios on its indicators of…

A: The return on assets indicates the profitability of the company. It is the comparison of the net…

Q: The Carioco Company has two divisions that operate independently of one another. The financial data…

A: Return on Investment (ROI) is a financial term used to evaluate the performance of an investment or…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.