The 2023 annual report for Pronghorn Industries Inc. contained the following information: Dec. 31, 2022 Dec. 31, 2023 Total assets 561,000 605,000 Total liabilities 65,400 88,900 Net revenue 410,000 530,000 Net income 54,000 32,000 Calculate the rate of return on assets using profit margin for 2023

The 2023 annual report for Pronghorn Industries Inc. contained the following information: Dec. 31, 2022 Dec. 31, 2023 Total assets 561,000 605,000 Total liabilities 65,400 88,900 Net revenue 410,000 530,000 Net income 54,000 32,000 Calculate the rate of return on assets using profit margin for 2023

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: For the year ending March 31, 2019, Northern Air Cooling Corporation has: Total assets =…

A: given, Total assets = $109,931,999 ROA = 9.67 % ROE = 11.19 % Net profit margin = 10.59 %

Q: Coronado Incorporated had average total assets in 2025 of $6345000. It reported sales for of…

A: RETURN ON ASSETS Return on Assets is the Ratio between Net Operating Income & Average Operating…

Q: Current Attempt in Progress Oriole Limited reported the following information (in millions) at…

A: The ratio analysis helps to analyze the financial statements of the business. The assets turnover is…

Q: The following are summary financial statement data for a company for 2020 – 2022. ($ thousands)…

A: Answer:- 1. Return on assets = (Net income / Average total assets ) x 1002. Average total asset =…

Q: The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019…

A: External financing needs are the amount that the company needs to avail from outside of the company.…

Q: XYZ Corporation had the following data in 2022 below: Total assets = P300,000 Gross profit margin =…

A: Deb ratio indicates the ratio of assets financed using debt. If the debt ratio is high it means the…

Q: Pro forma income statement The marketing department of Metroline Manufacturing estimates that its…

A: Percent to sales method: Under this method every expenses or costs are taken as a percentage of…

Q: Swifty Incorporated had average total assets in 2025 of $6343000. It reported sales for of $82090…

A: The ratio analysis helps to analyze the Financial statements of the business. The return on assets…

Q: a. Use the financial statements along with the additional information below to forecast property,…

A: Step 1 As per US GAAP , all the property , plants and equipment's should be present in the books of…

Q: The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019…

A: Every organization needs some capital to run a business and carry out business activities in an…

Q: Operating data for Riverbed Corp are presented below. 2022 2021 Sales revenue $850,500…

A: Vertical analysis: It is a method of analyzing the financial statement in which each item is shows…

Q: The 2025 Annual Report of Marigold International contains the following information: (in millions)…

A: Accounting ratios are financial ratios through which a company can analyze its performance in terms…

Q: 19. Using the following information, calculate the return on assets. Net income for November Total…

A: Lets understand the basics. ROA stands for return on assets. Return on assets is calculated as net…

Q: Forecast an Income Statement Following is the income statement for Medtronic PLC. Consolidated…

A: Forecasted Income statement: A forecasted income statement shows the budgeted income and expenses of…

Q: Seagate Technology reports the following income statement for fiscal 2019. SEGATE TECHNOLOGY PLC…

A: Income statements refer to the showing of the revenues or expenses earned during a period by the…

Q: For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.8%. Sales for the year…

A: RATIO ANALYSISRatio analysis is the process of determining and interpreting numerical relationships…

Q: EBIT = 4 million Net income = 2 million Calculate the company’s net profit margin Write the formula…

A: Quick assets includes such current assets that can immediately be converted into cash. However,…

Q: INCOME STATEMENT, 2022 Sales Cost Net income BALANCE SHEET, YEAR-END Assets $ 7,500 Total 5,900 $…

Q: The following information is provided for Company A and Company B. (in $ millions) Net income 2028…

A: RETURN ON ASSETSReturn on Assets is one of the profitability ratios which shows how much returns are…

Q: Allied Construction and Axis Construction reported the following information in their annual…

A: The ratio analysis helps to analyse the financial statements of the business on regular basis.…

Q: Prepare a 2020 income statement for Wildhorse Corporation based on the following information: Cost…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Suppose in its 2022 annual report that McDonald's Corporation reports beginning total assets of…

A: Asset turnover is one of the most used ratio formulas to evaluate the performance of a company.…

Q: The balance sheets of a company reported net fixed assets of $356,000 at the end of 2024. The…

A: The objective of the question is to find out the net fixed assets at the end of 2023 using the given…

Q: Using the following operating data for Complex Corporation, prepare a schedule showing a vertical…

A: Given:

Q: ATC's common-size income statement for 2020 would report cost of goods sold as: a) Up by 5.3% b)…

A: Common size statement: It implies a financial statement trend analysis technique that reflects the…

Q: Operating data for Windsor Corporation are presented below. Net sales 2020 $570,000 Cost of goods…

A: Approach to solving the question: For better clarity of the solution, I have attached the Excel…

Q: Below is Company A's balance sheet at the end of 2022. What is the gross profits of Company A? 2022…

A: Gross profit is a company's total sales revenue minus its cost of goods sold (COGS). It represents…

Q: Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation:…

Q: he 2019 financial statements for Growth Industries are presented below. Sales Costs EBIT Interest…

A: External finance is amount of finance that may be raised externally to maintain growth in sales due…

Q: The consolidated statements of financial position are to be read in conjunction with the…

A: The company's income statement is prepared for arriving at the profits generated by the company…

Q: The 2020 Annual Report of Sheffield International contains the following information. (in millions)…

A: Asset turnover ratio is a type of ratio that shows the total sales of a company as a time of the…

Q: 2019 financial statements for Growth Industries are presented below. ales Costs BIT INCOME…

A: Sales=$330000Net income=$72680Total assets=$330000Account payable=$16000Growth rate=g=30%Dividend…

Q: 10. Doric Co. reported the following items on its 2025 financial statements: View the items.…

A: Step 1: Calculation of average total assets.Average total assets = (Total assets beginning + Total…

Q: For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.0%. Sales for the year…

A: Ratios make it easier to compare several businesses within the same sector or industry. Comparing a…

Q: Forecast an Income Statement Seagate Technology reports the following income statement for fiscal…

A: Income statement: Under this Statement showing the company’s performance over a period of time by…

Q: Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales…

A: a).Balancing itemDividendsb).Value $250 THANK YOU

Q: Calculate Asset Turnover for 2021 using the following information: Net Income Net Sales Total Assets…

A: Assets Turnover :— It is calculated by dividing total sales by average total assets. Asset…

Question

100%

The 2023 annual report for Pronghorn Industries Inc. contained the following information:
Dec. 31, 2022 Dec. 31, 2023

Total assets 561,000 605,000
Total liabilities 65,400 88,900
Net revenue 410,000 530,000
Net income 54,000 32,000

Calculate the rate of return on assets using profit margin for 2023

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to return on assets

VIEW

Step 2: Working for average total assets for 2023

VIEW

Step 3: Working for profit margin and assets turnover ratio

VIEW

Step 4: Working for rate of return on assets

VIEW

Solution

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Refine Assumptions for PPE ForecastFollowing are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expenses 2,330 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit (loss) 6,268 Other nonoperating income, net (373) Interest expense 1,444 Income (loss) before income taxes 5,197 Income tax provision 547 Net income (loss) 4,650 Net (income) loss attributable to noncontrolling interests (19) Net income (loss) attributable to Medtronic $ 4,631 Consolidated Balance Sheet ($ millions) April 26, 2019 Current assets Cash and cash equivalents $ 4,393 Investments 5,455 Accounts receivable, less…
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.59 million. Interest expense is expected to remain unchanged at $36,000, and the firm plans to pay $66,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given LOADING... , along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why.
Use historic growth in total revenues from 2017 to 2017 to show the total revenue for 2019. Use historic rate of the total cost of revenue to total revenue to show total cost of revenue.
Calculate Return on Assets for 2021 using the following information: Net Income Net Sales Total Assets 53% 64% 20% 24% 2020 $2,500,000 $5,000,000 $10,000,000 2021 $3,000,000 $8,000,000 $15,000,000
How can this be worked out ?
XYZ Corporation had the following data in 2022 below: Total assets = P300,000Gross profit margin = 25%Quick ratio = 0.80 xBond payable = P60,000Days sales outstanding = 36 daysDebt ratio = 50%Retained earnings = P97,500Times interest earned= 6 xInventory turnover = 5 xTotal assets turnover = 1.5 xNo. of days in a year = 360 days Tax rate = 35%Compute the average merchandise inventory.
Suppose in its 2022 annual report that McDonald's Corporation reports beginning total assets of $29.00 billion, ending total assets of $31.00 billion, net sales of $22.20 billion, and net income of $4.26 billion. (a) Compute McDonald's return on assets. (Round return on assets to 2 decimal places, e.g. 5.12%.) McDonald's return on assets % (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12.) McDonald's asset turnover times
Suppose in its 2027 annual report that McDonald's Corporation reports beginning total assets of $20.80 billion, ending total assets of $19.20 billion, net sales of $21.80 billion, and net income of $4.10 billion. (a) Compute McDonald's return on assets. (Round return on assets to one decimal place, e.g. 5.1%.) McDonald's return on assets % (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12.) McDonald's asset turnover times
What do these numbers say about the company?
Using Financial Statements for 2020, sales to working capital for the year 2020 is 2.41. True or False?
Asset Efficiency Ratios Sammy Inc.'s financial statements for 2023 indicate the following account balances: Net sales Cost of goods sold Average accounts receivable Average inventory Average property, plant, and equipment Average total assets. Required: Round your answers to two decimal places. 1. Using this information, calculate Sammy's receivable turnover ratio. $307,608 170,100 21,329 3,960 85,367 144,140 2. Using this information, calculate Sammy's asset turnover ratio and also convert the ratio into days. Assume 365 days in a year. Round your answer to nearest whole day. Asset turnover ratio Conversion into days days
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019 Sales $ 5,000 Cost 3,900 Net income $ 1,100 BALANCE SHEET, YEAR-END 2018 2019 2018 2019 Assets $ 7,500 $ 12,100 Debt $ 833 $ 1,000 Equity 6,667 11,100 Total $ 7,500 $ 12,100 Total $ 7,500 $ 12,100 a. If sales increase by 10% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 10%), what must be the balancing item? b. What will be the value of this balancing item?