Homework Help is Here – Start Your Trial Now!
Business
Accounting
Some recent financial statements for Smolira Golf Corporation follow. Construct the DuPont identity for Smolira Golf Corporation.

Some recent financial statements for Smolira Golf Corporation follow. Construct the DuPont identity for Smolira Golf Corporation.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Some recent financial statements for Smolira Golf Corporation follow.

Construct the DuPont identity for Smolira Golf Corporation.

Assets Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment $ 328,695 Sales Cost of goods sold Depreciation Taxable income Taxes (24%) 2020 Earnings before interest and taxes Interest paid Net income $24,086 $24,500 12,848 15,600 26,042 27,500 $62,976 $67,600 Dividends Retained earnings $ 391,671 SMOLIRA GOLF CORPORATION 2021 Income Statement SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Other $ 362,400 $ 430,000 $ 24,000 30,319 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 373,473 254,500 32,800 Total Total liabilities and owners' equity $ 86,173 14,700 $ 71,473 17,154 $ 54,319 Total 2020 2021 $ 23,584 $27,500 15,000 11,200 11,971 18,300 $50,555 $57,000 $ 60,000 $61,565 $44,000 $ 44,000 237,116 267,435 $281,116 $311,435 $ 391,671 $ 430,000
Transcribed Image Text:Assets Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment $ 328,695 Sales Cost of goods sold Depreciation Taxable income Taxes (24%) 2020 Earnings before interest and taxes Interest paid Net income $24,086 $24,500 12,848 15,600 26,042 27,500 $62,976 $67,600 Dividends Retained earnings $ 391,671 SMOLIRA GOLF CORPORATION 2021 Income Statement SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Other $ 362,400 $ 430,000 $ 24,000 30,319 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 373,473 254,500 32,800 Total Total liabilities and owners' equity $ 86,173 14,700 $ 71,473 17,154 $ 54,319 Total 2020 2021 $ 23,584 $27,500 15,000 11,200 11,971 18,300 $50,555 $57,000 $ 60,000 $61,565 $44,000 $ 44,000 237,116 267,435 $281,116 $311,435 $ 391,671 $ 430,000
The company's profit margin is The total asset turnover is The equity multiplier is Using the DuPont identity, the company's ROE is percent. times. times. percent. (Use year-end figures rather than average values where appropriate. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) (Round your answer to 2 decimal places, e.g., 32.16.) (Round your answer to 2 decimal places, e.g., 32.16.) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Transcribed Image Text:The company's profit margin is The total asset turnover is The equity multiplier is Using the DuPont identity, the company's ROE is percent. times. times. percent. (Use year-end figures rather than average values where appropriate. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) (Round your answer to 2 decimal places, e.g., 32.16.) (Round your answer to 2 decimal places, e.g., 32.16.) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS