Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $64 million, total assets of $42 million, and total liabilities of $25 million. The interest rate on the company's debt 6.1 percent, and its tax rate is 35 percent. The operating profit margin is 12 percent. . Compute the firm's 2016 net operating income and net income. . Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.) Compute the firm's 2016 net operating income and net income. The firm's 2016 net operating income is $☐ million. (Round to two decimal places.)

Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $64 million, total assets of $42 million, and total liabilities of $25 million. The interest rate on the company's debt 6.1 percent, and its tax rate is 35 percent. The operating profit margin is 12 percent. . Compute the firm's 2016 net operating income and net income. . Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.) Compute the firm's 2016 net operating income and net income. The firm's 2016 net operating income is $☐ million. (Round to two decimal places.)

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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Office Depot, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $738.7 million and sales of $50,000 million in 2020 Its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. What is Office Depot, Inc.’s (a) asset turnover and (b) profit margin? (Round to two decimals.) Provide a brief interpretation of your results.
(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
(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $70 million, total assets of $45 million, and total liabilities of $25 million. The interest rate on the company's debt is 5.5 percent, and its tax rate is 35 percent. The operating profit margin is 13 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.) a. Compute the firm's 2016 net operating income and net income. The firm's 2016 net operating income is $ million. (Round to two decimal places.)
Wal-Mart Stores, Inc. in 2014 reported net income of$16.4 billion, net sales of $482.2 billion, and averagetotal assets of $204.2 billion. What is Wal-Mart’s assetturnover? What is Wal-Mart’s return on assets?
Target industries reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017?
In 2016, the Allen corporation had sales of $63 million, total assets of $44 million, and total liabilities of $15 million. The interest rate on the company’s debt is 5.7 percent, and it’s tax rate is 35 percent. The operating profit margin is 14 percent. A. Compute the firm’s 2016 net operating income and net income The firm’s 2016 net operating income is Round to two decimal places.
(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $63 million, total assets of $40 million, and total liabilities of $23 million. The interest rate on the company's debt is 5.7 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.) a. Compute the firm's 2016 net operating income and net income. The firm's 2016 net operating income is $8.82 million. (Round to two decimal places.) The firm's 2016 net income is $ million. (Round to two decimal places.) (---))
. A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5 million, and net income of $8 million. a) What is the firm's net profit margin? b) If net profit increased to 15% from your answer in a), what percentage change does this represent?
Green Penguin Pencil Company has a total asset turnover ratio of 6.00x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 million on which it pays a 11% interest rate. To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Green Penguin Pencil's debt management ratios? Ratio Debt ratio Times-interest-earned ratio Value Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with times-interest-earned ratios (TIE).
A company's sales in 2020 were $3.7 million and its total spontaneous assets were $9.7 million. Also in the same year, the firm's spontaneous liabilities consisted of $6.7 million in wages payable, $7.1 million in accounts payable, and $5.9 million in accrued expenses. The firm's profit margin is 5.5% and its dividend payout ratio is 3.1%. The balance sheet at year-end is similar in percentage of sales to that of previous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "k" is used to represent thousands (x $1,000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
Blue Sky Drone Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 million on which it pays a 7% interest rate. To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone’s debt management ratios? Ratio Value Debt ratio 24.51% Times-interest-earned ratio ?
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