What is the company's ROA?Denver, Incorporated, has sales of $27million, total assets of $24.9 million, andtotal debt of $5.7 million. Assume theprofit margin is 9 percent.

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Answered: What is the company's ROA? Denver,…

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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If Turnpoint Inc. has net income of $300,000, assets of $3,000,000, sales of $2,000,000, and debt of 1,300,000, what is their ROE?
Consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries (we usually call this SG&A for selling, general and administrative) of $1,750.0 million, depreciation of $2,250.0 million, and interest expense of $2,300 million. Tax rate=21%. Generate an income statement and show net income. What is the company’s operating cash flow? If there are 775.2 million shares outstanding, what is the EPS? If the company has a payout ratio of 20%, what is the dividends per share?
Denver, Incorporated, has sales of $13 million, total assets of $11 million, and total debt of $6.4 million. Assume the profit margin is 6 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Net income b. ROA % c. ROE %
Orlando Landscaping has current assets of $5,100, net fixed assets of $23,000, current liabilities of 4,300 and long-term debt of 7,400. What is the value of the Shareholders equity account for this firm? How much is net working capital? Brighton Electric Inc. has sales of $586,000, cost of $247,000, depreciation expense of $43,000, interest expense of $32,000 and a tax rate of 35%. Suppose the firm paid out $73,000 in cash dividends. What is the addition to retained earnings? Friers Industry Inc. purchased new machinery three years ago for $7 million. The machinery can be sold to Simpson Industries today for $4.9 million. Friers current statement of financial position shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1.6 million cash. What is the book value of Friers’ assets today? What is the market value?
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What is the company's ROA? Denver, Incorporated, has sales of $27 million, total assets of $24.9 million, and