Return on assets Total asset turnover Net profit margin % %

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
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Income statement
Sales revenue
Cost of goods sold
Gross profit
Operating expenses and interest expense
Pretax income
Income tax
Net income
Balance sheet
Cash
Accounts receivable (net)
Inventory
Property and equipment (net)
Total assets
Current liabilities (no interest)
Long-term liabilities (interest rate: 12%)
Common stock ($5 par value, 7,500 shares outstanding)
Retained earnings
Total liabilities and stockholders' equity
Return on assets
Total asset turnover
Net profit margin
%
Year 2
%
$ 220,000
119,500
100,500
59,000
41,500
11,000
$ 30,500
$7,000
15,500
43,000
49,500
$ 115,000
$ 17,500
46,500
37,500
Year 11
$ 174,500
103,000
71,500
54,500
17,000
5,500
$ 11,500
2. Compute return on assets, total asset turnover, and the net profit margin for Year 2.
Note: Round your answers to 2 decimal places.
$ 8,500
19,500
38,400
41,000
$ 107,400
$ 18,500
46,500
37,500
4,900
13,500
$ 115,000 $ 107,400
Transcribed Image Text:ces Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 12%) Common stock ($5 par value, 7,500 shares outstanding) Retained earnings Total liabilities and stockholders' equity Return on assets Total asset turnover Net profit margin % Year 2 % $ 220,000 119,500 100,500 59,000 41,500 11,000 $ 30,500 $7,000 15,500 43,000 49,500 $ 115,000 $ 17,500 46,500 37,500 Year 11 $ 174,500 103,000 71,500 54,500 17,000 5,500 $ 11,500 2. Compute return on assets, total asset turnover, and the net profit margin for Year 2. Note: Round your answers to 2 decimal places. $ 8,500 19,500 38,400 41,000 $ 107,400 $ 18,500 46,500 37,500 4,900 13,500 $ 115,000 $ 107,400
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