The following information is provided for Globe Enterprises and Summit Solutions:(in $ millions)Globe Enterprises Summit SolutionsNet income 2020$400$720Net sales 20203,2008,100Total assets 12/31/182,5005,200Total assets 12/31/192,8005,800Total assets 12/31/203,0006,400Revenue from investments $300$600What is Summit Solutions' return on assets (rounded) for 2020?

Computation of return on assets of Summit Solutions by using the following formula:Resultant…

Answered: The following information is provided…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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The following information is provided for Company A and Company B. (in $ millions) Net income 2028 Net sales 2028 Total assets 12/31/26 Total assets 12/31/27 Total assets 12/31/28 What is Company B's return on assets for 2028? OA) 14.0% OB) 10.5% OC) 12.0% Company A $165 1,650 1,000 1,050 1,150 OD) 15.6% Company B $ 420 4,900 2,400 3,000 4,000
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Make the financial analysis. Complete the data below. Show solution for a guide.
Selected 2020 balance sheet and income statement information for Vkusno & Tochka Corporation and Tasty Treats, Inc., follows. ($ millions) Vkusno & Tochka Tasty Treats Sales Revenue Interest Expense Net Income Average Total Assets $96,040 $6,090 $27,786 $294,060 28,260 2,715 5,309 32,549 a. Compute the return on assets (ROA) for each company. Use the 25% statutory tax rate. Note: Round your answers to the nearest million dollars. Numerator ($ millions) + Denominator ($ millions) 0+ $ 0+$ Vkusno & Tochka's ROA $ Tasty Treats' ROA $ Vkusno & Tochka's PM $ Tasty Treats' PM Vkusno & Tochka's ROA Tasty Treats' ROA b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. • Note: Round your answers to the nearest million dollars. $ Vkusno & Tochka's AT $ Tasty Treats' AT $ Numerator ($ millions) + Denominator ($ millions) 0$ 05 0+$ 0+ $ PM X % x % X 0 AT c. Discuss any differences in these ratios for each company. has the lower ROA ratio. has the higher PM ratio.…
Below are the Statement of Financial Position of Malibu Finance Inc for the year 2020. Statement of Financial position 2020 Asset Cash P1,100,000.00 AR P1,027,000.00 Prepaid insurance P15,000.00 Marketable securities P600,000.00 Merchandise inventory P600,000.00 Furniture and fixtures [net] P350,000.00 Land $900,000.00 Building [net] $3,250,000.00 Total assets #7,842,000.00 Liabilities and Equity AP P1,530,000.00 Notes Payable (due in 6 months) P600,000.00 Bonds payable due in 5 years P500,000.00 Total liabilities P2,630,000.00 Shareholders Equity Ordinary shares $4,000,000.00
A comparative balance sheet for Carter Fuel Injection Systems, Inc. appears below:Carter Fuel Injection Systems, Inc.Comparative Balance SheetDec. 31, 2020 Dec. 31, 2019AssetsCash $ 34,000 $11,000Accounts receivable 25,000 13,000Inventory 18,000 17,000Prepaid expenses 11,000 9,000Long-term investments -0- 17,000Equipment 55,000 33,000Accumulated depreciation—equipment (20,000) (15,000)Total assets $123,000 $85,000Liabilities and Stockholders' EquityAccounts payable $ 27,000 $ 7,000Bonds payable 35,000 45,000Common stock 31,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $123,000 $85,000Additional information:1. Net income for the year ending December 31, 2020 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. No equipment was sold during 2020.HINT: depreciation expense must be determined. Notice in #4 it states no equipment was “sold”during…
Perform a vertical analysis on the following information. 2021 2020Cash $ 420,000 $ 1,050,000Accounts receivable 660,000 300,000Inventory 1,020,000 925,000Long-term assets 3,900,000 2,725,000Total assets $ 6,000,000 $ 5,000,000
The following information is provided for Sandhill Company and Indigo Corporation. (in $ millions) Sandhill Company Indigo Corporation Net income 2022 $125 $375 Net sales 2022 1540 4500 Total assets 12/31/20 1045 2010 Total assets 12/31/21 1220 3150 Total assets 12/31/22 1175 4070 What is Indigo's return on assets for 2022?
Below is Company A's balance sheet at the end of 2022. What is the gross profits of Company A? 2022 AmountNet sales$1,000.0Variable operating costs 770.0Fixed operating costs 50.0Depreciation and 50.0Interest30.0Taxes20.0Preferred dividends5.0Common dividends25.0 amortization Group of answer choices $130 $230 $180 $1,000
Presented below are the year-end balance of the assets and liabilitiespertaining to Starlight Merchandising 2020 2019Cash P150,000 P120,000Equity investment at FVPL 260,000 230,000AR, net 360,000 400,000Inventories 705,000 635,000Prepaid Expenses 130,000 128,000Accounts payable 182,000 136,000Other current liabilities 141,000 125,000Bonds Payable 200,000 200,000Additional investment made by the owner during 2020 was P150,000 but a P200,000 personal liability was paid out of company's funds. What is the company's profit or loss for the year ended December 31, 2020? 30,000 800,000 Answer not given 140,000 700,000
Using the information provided below:Rubialac PaintsSelected Income Statement Items, 2020Cash Sales $2,500,000Credit Sales $9,500,000Total Sales $12,000,000COGS 7,000,000 Rubialac PaintsSelected Balance Sheet Accounts12/31/2020 12/31/19 ChangeAccounts Receivable $550,000 $400,000 $150,000Inventory $275,000 $250,000 $25,000Accounts Payable $150,000 $110,000 $40,000 What is the inventory turnover for Rubialac Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?

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