Question:A company had net income of$2,660,000, net sales of$25,000,000, and average totalassets of $8,000,000. What istheir return on total assets?

Step 1:Return on total assets is a type of ratio which is a method of analysis of financial…

Answered: Question: A company had net income of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the net income for a company given the following information: Sales revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $20,000, Interest expense = $5,000, and Income tax rate = 25%.
Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income statement For the year ended December 31, 2021 net sales $240 Cost of goods sold $150 gross profit $90 Operating expenses $65 Net income $25 Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%
Some recent financial statements for Smolira Golf Corporation follow. Assets Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment $336,695 Sales Cost of goods sold Depreciation Taxable income Taxes (22%) Net income SMOLIRA GOLF CORPORATION 2021 Income Statement Earnings before interest and taxes Interest paid Dividends Retained earnings a. Current ratio b. Quick ratio c. Cash ratio Short-term solvency ratios: Asset utilization ratios: d. Total asset turnover e. Inventory tumover 1. Receivables turnover 2020 $23,066 $25,300 13,648 16,400 27,152 28,300 $63,866 $70,000 g. Total debt ratio h. Debt-equity ratio I. Equity multiplier Long-term solvency ratios: Times Interest emned K Cash coverage ratio Profitability ratios: SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 $ 400,561 $ 434,000 1. Profit margin m. Return on assels n. Return on equity $ 364,000 $ 22,000 19,891 Find the following financial ratios for Smolira Golf…
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Calculate the net profit for a company given the following information: Total revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $25,000, and Taxes = $10,000.
Some recent financial statements for Smolira Golf Corporation follow. Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Sales Cost of goods sold Depreciation Taxable income Taxes (22%) Earnings before interest and taxes Interest paid Net income Dividends Retained earnings 2020 $35,585 $38,940 28,846 43,112 18,401 3,970 SMOLIRA GOLF CORPORATION 2021 Income Statement a. Price-earnings ratio b. Dividends per share c. Market-to-book ratio d. PEG ratio SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 Liabilities and Owners' Equity Current liabilities $57,956 $110,898 $ 465,585 $ 27,000 37,022 Accounts payable Notes payable Other $ 521,433 Total $ 523,541 $ 632,331 Total liabilities and owners' equity Long-term debt times Owners' equity Common stock and paid-in surplus Accumulated retained earnings times times Total $ 512,454 363,528 45,963 $102,963 20,883 $ 82,080 18,058 $ 64,022 Smolira Golf Corporation has 52,000…
Bottlebrush Company has operating income of $49,749, invested assets of $309,000, and sales of $710,700. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit margin % b. Investment turnover c. Return on investment %
A company has net income of $300,000, net sales of $2,500,000, and total assets of $2,000,000. Its return on total assets equals a. 6.7%. c. 8.3%. e. 15.0%. b. 12.0%. d. 80.0%.
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Question: A company had net income of $2,660,000, net sales of $25,000,000, and average total assets of $8,000,000. What is their return on total assets?