Beta Limited has an operating gearing of 3. If activity increases by 10% the profit of the business will increase by Ca 10% Ob. profit will remain unchanged Oc 30% Od.3%
Q: A firm has an ROA of 7.4%, sales of $80, and total assets of $100. What is its profit margin? O…
A: We need to use the following two ratios for calculation of profit margin first we need to calculate…
Q: INCOME STATEMENT XYZ Industries is forecasting the following income statement: Sales P8,000,000…
A: Net income = 2,500,000 Tax rate = 40% Operating cost = 55% of sales Depreciation and amortization…
Q: If Net sales $200,000, Cost of goods sold 90,000, Operating expenses 80,000, Net income10,000, Total…
A: Operating Income = Net Sales - Cost of goods sold - Operating expenses = $200,000 - $90,000 -…
Q: ieverage is 6 (contribution margin dividled by net income), one would expect net income to increase…
A: Degree of operating leverage (DOL) refers to the method that measures the percentage change in EBIT…
Q: Keller Cosmetics maintains an operating profit margin of 5.0% and asset turnover ratio of 3.0. What…
A: Return on Assets (ROA) is a measures the efficiency of a company in generating profit from its…
Q: Martinez Corporation reported net sales of $772,000, net income of $135,000, and total assets of…
A: Profit margin= Net income/net Sales *100
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: Buford Corporation provided the information below. Sales $500,000 Net operating income $54,000…
A: Assets- A corporation has a lot of resources, both financial and non-financial. However, an asset is…
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: ,000 resulting in an operating income of $183,000. Average invested assets total $801,000. If sales…
A: A company's revenue is compared to its debt and equity in the investment turnover ratio. The ratio…
Q: 44. Oman Gulf Company SAOC shows some of the financial information in their annual report. Sales: RO…
A: Net Profit Margin Ratio: It is the financial ratio calculated by dividing total revenue by total…
Q: Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000 What…
A: Given, Current year sales = $1,025,000 Preceding year sales = $820,000 Percentage increase in sales…
Q: Following are financial statement numbers and ratios for Salsa Incorporated for the year ended…
A: Given, NOPAT = $572.7 NOA = $3460.8 NOPM = 15.9% NOAT = 1.04 Expected revenue growth = 7%
Q: Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If…
A:
Q: Mason Corporation had $650,000 in invested assets, sales of $700,000, operating income amounting to…
A: Profit margin is one of the formulas to assess the amount of profit generated by an organization. It…
Q: Strawberry, Inc. reported the following income statement for the year: Sales Variable Costs Interest…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Blaser Corporation had $1,092,000 in invested assets, sales of $1,214,000, income from operations…
A: Return on investment = Income from operation / Average investment where, Average investment =…
Q: A company has annual sales of $100,000, total debt of $50,000, total equity of $50,000, and a profit…
A: Return on assets tells us how profitable a firm is visa vis its assets. Return on assets = Net…
Q: The balance sheet of ATLF, Inc. reports total assets of $1,950,000 and $2,050,000 at the beginning…
A: Profit margin ratio is calculating by dividing the net income by net sales.
Q: Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating…
A: Solution:- 1)Calculation of Times interest earned ratio as follows under:- Times interest earned…
Q: Last year, Hassan's Madhatter, Incorporated had an ROA of 6.6 percent, a profit margin of 11.55…
A: To calculate Hassan's Madhatter, Incorporated's total assets, we can use the formula:…
Q: f a company gains 40 $ for every 1000$ in revenue for a certain product, what is the profit margin…
A: Profit Margin is the percentage of profit earned over its net sales. It can be calculated as under.…
Q: Bottlebrush Company has operating income of $40,725, invested assets of $181,000, and sales of…
A: Return on Investment =Net income / Average Investment Where, Average Investment = (beginning…
Q: Lewis Company has operating income of $265,000. Its return on investment (ROI) is 53%, while its…
A: Total assets are the total worth of resources owned by the business.
Q: 8. The following information is available for the Hancock Company. Sales Cost of Sales Operating…
A: Workings:- Particulars Amount Amount Sales $ 7,56,000 Less: COGS $ 3,15,000…
Q: Assume Old Oak Winery made Net Sales Revenue of $73,000 and Cost of Goods Sold totaled $50,000. What…
A: The gross profit is calculated as difference between sales and cost of goods sold. The gross profit…
Q: Assume the following sales data for a company: Year 2 $562,500 Year 1 $450,000 What is the…
A: SOLUTION- FORMULA= PERCENTAGE INCREASE IN SALES FROM YEAR 1 TO YEAR 2= CHANGE IN SALES FROM YEAR 1…
Q: ome of $756,000. If sales increase by 10% and the investment level remains constant your…
A: Investment turnover is a helpful financial indicator for analyzing a company's operational…
Q: Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is…
A: ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier Where, Net Profit…
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: Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20.…
A: Sales = $1,696,000Operating profit = $138224Net profit = $73656.80
Q: Assume a company had net operating income of $300,000, sales of $1,500,000, average operating assets…
A: the sales are made by the company which leads to generation of the revenue and many other investment…
Q: Accelerated Logistics provides the following information: Operating income $1,600,000 $15,000,000…
A: The profit margin ratio is calculated as the ratio of net profit and sales revenue
Q: If net operating income is $83,000, average operating assets are $415,000, and the minimum required…
A: Residual income is the net operating income over and above income at minimum required rate of return…
Q: What is the return on assets for a firm that has a gross profit of $1.2 million, an operating profit…
A: The return on assets can be defined as the ratio that measures the return in percentage terms that…
Q: In a business with an asset turnover rate of 2, the return on assets rate is 30% and the net profit…
A: Net sales refer to the amount of goods sold and services provided by the business less discounts…
Q: Clydesdale Company has sales of $4,500,000, invested assets of $2,000,000, and operating expenses of…
A: First, compute the operating income as shown below: Operating income = Sales - Operating expense…
Q: Aboridor company had the following results last year: Sales, P700,000; Return on Investment, 28%;…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A company has a profit margin of 10% and reports net sales of $4,000,000 and average total assets of…
A: Return on assets = Net income / Average total assets where, Average total assets = (Beginning total…
Q: p. has sales revenue of $509,000 resulting in operating income of $57,000. Average invested assets…
A: Return on investment = (Operating income / Average invested assets )*100 Profit margin ratio =…
Q: Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest…
A: To calculate the return on investment (ROI) as a percentage for the given company, we need to divide…
Q: DD has an ROA of 10% , a 2% profit margin, and a return on equity equal to 15%. What is the…
A: Given: Return on Assets (ROA) = 10% Profit Margin = 2% Return on Equity = 15%
Q: Briggs Company has operating income of $33,516, invested assets of $133,000, and sales of $478,800.…
A: given, operating income =$33,516 invested assets = $133,000 sales =$478,800
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $17,800, invested assets of $89,000, and sales of $178,000. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin fill in the blank 1 % b. Investment turnover fill in the blank 2 c. Return on investment fill in the blank 3 %Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest tenth of a percent.) Company Net Sales Cost ofGoods Sold GrossProfit OperatingExpenses a countertop installer $759,500 $486,560 $272,940 $176,410 Net Profit Gross ProfitMargin (%) Net ProfitMargin (%) Owner's Equity Return onInvestment (%) $96,530 35.9% 12.7% $425,210 %Pine Corp. has revenues of $520,000 resulting in an operating income of $66,560. Invested assets total $611,000. Residual income is $24,000. Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same. (Do not round your intermediate calculations.) A $0 B $30,656 C $42,560 D $10,496
- The following information pertains to Travis Concrete: Sales revenue $2,000,000 Gross margin 700,000 100,000 550,000 Income Invested capital The company's imputed interest rate is 8%. The capital turnover is: Multiple Choice 27.50. 3.64. 20.00.20. From the following data calculate: a) P/V Ratio b) Variable cost and c) Profit Rs 80,000 15,000 50,000 Sales Fixed expenses Break even point 000.00 Answer all the question PART-C 21 What are the objectives of management accoun Or b) Distinguish between management accounting a accounting. 22. From the following information calculate the b Total asset/Net worth a. = 3.5 Sales/fixed assets = 6 -XYZ Company has net income of $1,000, revenues of $10,000, total assets of 50,000, current assets of $3,000 and current liabilities of $1500. What is their profit margin? Group of answer choices 2% 200% 2 10%
- Du Pont Analysis TRP has total receiveables of $3,000, which represents 20 days sales. Total assets are $75,000. The operating profit margin is 5%. Find the firms ROA and its assets turnover ratio.A company has net income of $7.5 M with a net profit margin of 7.5%, and an EBITA margin of 12%. What is the company's EBITDA Group of answer choices S12M $12.5M $13.5M S13 MUse this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,058,000 in invested assets, sales of $1,229,000, income from operations amounting to $202,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 19.1% Ob. 16.4% Oc. 86.1% IC. Od. 12.0%
- Margin, Turnover, Return on Investment Pelak Company had sales of $4,945,000, expenses of $4,566,000, and average operating assets of $3,690,000. Required: 1. Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin Turnover % 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. %Data on three unrelated companies are given in the following table. E (Click the icon to view the table.) Fill in the missing information in the preceding table. (Enter the capital turnover to two decimal places X.XX.) Osborne, Inc. Sales $ 114.000 Operating income $ 39,900 Total assets $ 71,250 Sales margin % Capital turnover Return on investment (ROI) Target rate of return. 10 % Residual income5 Edmonds Industries is forecasting the following income statement: Sales Operating costs (excl. Depr. & Amort.) EBITDA Depreciation EBIT Interest EBT Taxes (40%) Net income $10,000,000 5,500,000 4,500,000 1,200,000 $ 3,300,000 500,000 $ 2,800,000 1,120,000 $ 1,680,000 The CEO would like to see higher sales and a forecasted net income of $2,100,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,100,000 in net income?