The following is selected data for Inland Industries:SalesNet IncomeTotal Current Assets20162015$1,200,000 $1,300,000117,000 10,000164,000150,000638,000Property, Plant and Equipment 646,000The return on assets for 2016 was.A. 28.89%B. 18.11%C. 18.34%D. 14.64%

To calculate the Return on Assets (ROA) for 2016, use the formula: ROA=Average Total AssetsNet…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the average cost of computer equipment fell 24.5 percent between 2016 and 2017. Let’s see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017. 2017 2016 Sales Revenues $ 100,300 $ 128,468 Cost of Goods Sold 61,700 77,081 Gross Profit 38,600 51,387 Selling, General, and Administrative Expenses 30,200 30,200 Interest Expense 586 480 Income Before Income Tax Expense 7,814 20,707 Income Tax Expense 4,708 6,737 Net Income $ 3,106 $ 13,970 Required: 1-a. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages. (Round your "Percentage" to 1 decimal place. Any decrease in amounts should be indicated with minus sign)
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Computing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability (Net income/Sales) 25.3% 53.2% Productivity (Sales/Average assets) 0.338 0.319 a. Was the company profitable in 2018?Answer b. Was the company more profitable in 2018 or 2017?Answer c. Is the change in productivity a positive or negative development?Answer d. Compute the company’s ROA for 2018 and for 2017. Note: Round answers to one decimal places (example: 10.4%). ROA 2018 Answer 2017 Answer e. From the information provided, which of the following best explains the change in ROA during 2018? Answer
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None
Manero Company included the following information in its annual report: 2019 2018 Sales $178,400 $162,500 102,500 Cost of goods sold 115,000 Operating expenses 50,000 50,000 Operating income 13,400 10,000 In a trend income statement for 2017, where 2017 is the base year, sales are expressed as: Multiple Choice 150.5% O100.0% 84,4% 92.6% 2017 $155,500 100,000 45,000 10,500
Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $132,756, invested assets of $299,000, and sales of $1,106,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
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Financial Accounting CMulford: Financial Statement Analysis: 13 Using Return on Assets and Return on Equity to Compare Performance Across Companies Thiokol Corp. and Wyman-Gordon, Inc. In a recent fiscal year, Thiokol Corp. reported sales of $889.5 million and net income of $51.4 million. For the same year, Wyman-Gordon, reported sales of $499.6 million and net income of $25.2 million, about half the income of Thiokol. Both companies are in the same industry, aerospace and defense. Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 $ 51.4 $ 818.3 $ 447.9 Wyman-Gordon $ 499.6 $ 25.2 $ 375.9 $ 109.9 Sales Net income Total assets Shareholders' equity Calculate: Return on assets Return on equity Why is Return on equity so different for the two companies?
ILLUSTRATION 7. From the following information, interpret the results of operations of manufacturing concern using trend ratios : (Amount in '000 $ For the year ended 31st March 2016 2015 2014 2013 10,000 9,500 5,890 Sales (net) 13,000 12,000 Cost of Goods Sold 7,280 6,960 6,000 5,040 1,100 3,610 970 4,000 1,000 Gross Profit 5,720 Selling Expenses 1,200 Net Operating Profit 4,520 3,940 2,640 3,000

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The following is selected data for Inland Industries: Sales Net Income Total Current Assets 2016 2015 $1,200,000 $1,300,000 117,000 10,000 164,000 150,000 638,000 Property, Plant and Equipment 646,000 The return on assets for 2016 was. A. 28.89% B. 18.11% C. 18.34% D. 14.64%