The following information (in $ millions) comes from the Annual Report of Saratoga Springs Co. for the year ending 12/31/2021: Year ended 12/31/2021 Net sales $7,949 Cost of goods sold 4,767 Selling and administrative expense 1,909 Interest expense 416 Income before tax 857 Net income 458 12/31/2021 12/31/2020 Cash and cash equivalents $ 975 $ 64 Receivables, net 1,010 664 Inventories 1,055 519 Land, buildings and equipment at cost, net 13,500 3,844 Total assets $ 16,540 $ 5,091 Total current liabilities $ 5,747 $ 2,209 Long-term debt 5,591 2,221 Total liabilities $ 11,338 $ 4,430 Total stockholders' equity $ 5,202 $ 661 Required: Compute the return on assets for 2021. (Round your answer to 1 decimal place.)
The following information (in $ millions) comes from the Annual Report of Saratoga Springs Co. for the year ending 12/31/2021: Year ended 12/31/2021 Net sales $7,949 Cost of goods sold 4,767 Selling and administrative expense 1,909 Interest expense 416 Income before tax 857 Net income 458 12/31/2021 12/31/2020 Cash and cash equivalents $ 975 $ 64 Receivables, net 1,010 664 Inventories 1,055 519 Land, buildings and equipment at cost, net 13,500 3,844 Total assets $ 16,540 $ 5,091 Total current liabilities $ 5,747 $ 2,209 Long-term debt 5,591 2,221 Total liabilities $ 11,338 $ 4,430 Total stockholders' equity $ 5,202 $ 661 Required: Compute the return on assets for 2021. (Round your answer to 1 decimal place.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information (in $ millions) comes from the Annual Report of Saratoga Springs Co. for the year ending 12/31/2021:
| Year ended | 12/31/2021 | |
| Net sales | $7,949 | |
| Cost of goods sold | 4,767 | |
| Selling and administrative expense | 1,909 | |
| Interest expense | 416 | |
| Income before tax | 857 | |
| Net income | 458 | |
| 12/31/2021 | 12/31/2020 | ||||||||
| Cash and cash equivalents | $ | 975 | $ | 64 | |||||
| Receivables, net | 1,010 | 664 | |||||||
| Inventories | 1,055 | 519 | |||||||
| Land, buildings and equipment at cost, net | 13,500 | 3,844 | |||||||
| Total assets | $ | 16,540 | $ | 5,091 | |||||
| Total current liabilities | $ | 5,747 | $ | 2,209 | |||||
| Long-term debt | 5,591 | 2,221 | |||||||
| Total liabilities | $ | 11,338 | $ | 4,430 | |||||
| Total |
$ | 5,202 | $ | 661 | |||||
Required:
Compute the return on assets for 2021. (Round your answer to 1 decimal place.)
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