XYZ Company has a gross profit margin of 0.30, an operating profit margin of 18%, a total asset turnover ratio of 2.0x, and cost of goods sold of $700,000. The company's tax rate is 35%, and it has no debt. Calculate XYZ Company's Return on Assets (ROA).

XYZ Company has a gross profit margin of 0.30, an operating profit margin of 18%, a total asset turnover ratio of 2.0x, and cost of goods sold of $700,000. The company's tax rate is 35%, and it has no debt. Calculate XYZ Company's Return on Assets (ROA).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: How much gross profit will be necessary?

A: Given:Gross profit margin = 45%Net sales = $6.5 million Formula:Gross profit = Net sales * Gross…

Q: Need solution

A: Concept of AssetsAssets are the resources owned by a company that have economic value and can…

Q: expert of account answer

A: Step 1: Definition of Net IncomeNet income is the company's total profit after deducting all…

Q: Financial Accounting Question

A: Step 1: Define Net Operating Profit After Tax (NOPAT)Net Operating Profit After Tax (NOPAT) is a…

Q: Please give me correct answer this financial accounting question not use ai

A: Step 1: Introduction to earnings per shareEarnings per share (EPS) is a financial metric that…

Q: Financial accounting question

A: Question: 1Explanation of Defective Rate:The defective rate represents the percentage of total units…

Q: None

A: Step 1: Definition of Retained EarningsRetained earnings represent the portion of a company's net…

Q: Can you help me with accounting questions

A: Step 1: Apply the formula to calculate sales excluding taxStep 2: Calculate the sales excluding tax…

Q: ans.

A: To convert the gross profit margin (GPM) based on the selling price into a markup on cost, we use…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Sales Using Gross Profit MarginSales revenue is calculated by adding the cost…

Q: Please help me with part B

A: Solution for Part (a): Diluted Earnings Per Share with Convertible BondsStep 1: Compute Adjusted Net…

Q: Need solution

Q: Get accurate answer of this financial accounting question

A: Step 1:First, calculate the total current assets: Total current assets = Cash + Marketable…

Q: Please provide answer this financial accounting question without use Ai

A: Step 1: Define Dividend YieldDividend yield is a financial ratio that measures the annual dividend…

Q: Glenview Corporation's statement of cash flows

A: Step 1: Introduction to cash flow statementCash flow statement refers to a financial statement…

Q: financial account

A: Formula for Degree of Operating Leverage (DOL):DOL=Operating ProfitContribution Margin where:…

Q: hello tutor please help me answer

A: Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…

Q: What is the contribution margin per machine hour on this financial accounting question?

A: Step 1: Define Contribution Margin per Machine HourContribution Margin per Machine Hour is a measure…

Q: What was the variable overhead

A: Concept of Variable Overhead CostsVariable overhead costs are indirect manufacturing expenses that…

Q: Financial accounting question

A: Step 1: Define Finance ChargeThe finance charge is the total amount of interest and fees paid over…

Q: How do you calculate the gross profit of a company?

A: Step 1: The gross profit formula.Calculating the gross profit requires two main accounts: Sales and…

Q: Quick answer of this accounting questions

A: Step 1:First calculate the average total assets: Average total assets = (Beginning total assets +…

Q: Atlas Corporation has forecasted sales of $4,000 in January, $5,500 in February, and $7,000 in…

A: Accounts receivable in the beginning of April = 60% of March salesAccounts receivable in the…

Q: Need true answer general Accounting question

A: Step 1: Define Net IncomeNet Income is the total profit of a company after deducting all expenses,…

Q: can you please solve this

A: Calculate Capital GainCapital Gain per Share = Current Price − Purchase Price Capital Gain per Share…

Q: Anderson Technologies has 40,000,000 shares outstanding with a current market PPS of $30.25. If the…

A: Concept of Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio is a financial metric that…

Q: Given step by step explanation general Accounting question

A: Step 1: Define Installment Note PaymentAn installment note payable requires periodic payments, which…

Q: Hii expert please provide correct answer general accounting question

A: Step 1: Define Capitalizable CostsCapitalizable costs are expenses incurred to acquire and prepare…

Q: General Accounting

A: Step 1: Define Equivalent Units of Production (EUP) for Direct MaterialsEquivalent Units of…

Q: Compute the total variable cost per unit

A: Explanation of Variable Cost per Unit:Variable cost per unit refers to the costs that change…

Q: a.Prepare the lease schedule for the Kaizen Limitedb. Prepare Kaizen’s journal entries for 2016…

A: Given Information:Lease Term: 5 yearsEconomic Life: 6 yearsAnnual Rental Payment: $160,000 (includes…

Q: Solve this Accounting problem

A: The predetermined overhead rate (POHR) is an estimated cost per unit of activity (in this case, per…

Q: Caropola is a drilling company that operates an offshore Oilfield in Feeland. Five yearsago, Maine…

A: Calculate the Present Value of the Decommissioning ProvisionThe estimated eventual cost of…

Q: What is the value of current liabilities?

A: Step 1: Ratios Current ratio of 8:1 means that the current assets are 8 times the current…

Q: None

A: Step 1: Definition of Cost PriceThe cost price refers to the actual amount paid by a seller to…

Q: Get correct answer general accounting question

A: To determine the finance charge on Michael's loan, we first need to calculate the total amount he…

Q: Correct net sale revenue?

A: Step 1: Definition of Net Sales RevenueNet Sales Revenue is the total revenue from sales after…

Q: Saddle Industries has sales of $625,400, total equity of $275,000, a net profit margin of 9.25…

A: To calculate Return on Assets (ROA), use the formula:ROA=Total AssetsNet Income Calculate Net…

Q: What is the cost of the land?

A: Explanation of Land Cost:The Land Cost refers to the total amount spent to acquire a piece of land…

Q: 16. Camen Company projects the following sales: (Click on the icon to view the projected sales.)…

A: Step 1:First, calculate the cash sales and sales on account: Formula table: Result of the above…

Q: I need help

A: Explanation of Assets: Assets are economic resources owned by a company that have future economic…

Q: Solve this financial accounting problem

A: Explanation of Net Income: Net income represents the company's total profits after deducting all…

Q: Do fast answer of this accounting questions

A: Step 1: Identify Given DataTotal bottles started: 25,000 Ending work-in-process (WIP): 6,000…

Q: What is the required rate of return on these financial accounting question?

A: Understanding the Problem We are given the following information about Evergreen Solutions:Dividend…

Q: Tutor please provide answer

A: Explanation of Depreciable Base:The depreciable base refers to the total cost of an asset that can…

Q: Garrison Enterprises has a net profit margin of 6%, a total asset turnover of 1.8 times, and a debt…

A: Step 1: Given Value for Calculation Profit Margin = pm = 6%Total Asset Turnover = tat = 1.8…

Q: ??

A: Explanation of Operating Leverage: Operating leverage is a measure of how changes in sales volume…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Cost of Goods Manufactured (COGM)The Cost of Goods Manufactured (COGM) is the…

Q: In the current year, Palmer Industries incurred $180,000 in actual manufacturing overhead cost. The…

A: Concept of Actual Manufacturing Overhead: Actual manufacturing overhead represents the total…

Q: Accounting question

A: Step 1: Define High-Low MethodThe High-Low Method is a cost estimation technique used to separate…

Question

100%

Do fast answer of this accounting questions

XYZ Company has a gross profit margin of 0.30, an operating profit margin of 18%, a total
asset turnover ratio of 2.0x, and cost of goods sold of $700,000. The company's tax rate is
35%, and it has no debt. Calculate XYZ Company's Return on Assets (ROA).

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Sales $ 1,200 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (20%) ? Net income $ ?
DTO, Inc., has sales of $18 million, total assets of $16.5 million, and total debt of $9.4 million. Assume the profit margin is 8 percent. a. What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations. 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. C. % %
A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Will need to find EBIT first. Sales $ 1,050 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (24%) ? Net income $ ?
What is karan financial services net income?
Keller Cosmetics maintains an operating profit margin of 8.25% and a sales-to-assets ratio of 3.40. It has assets of $550,000 and equity of $350,000. Assume that interest payments are $35,000 and the tax rate is 40%. a) What is the return on assets? b) What is the return on equity?
Harrington Industries has a profit margin of 5.2% on sales of $18,400,000. The company's total assets are $12,200,000, and it has debt of $5,600,000. Calculate Harrington Industries' Return on Assets (ROA).
Wims Inc., has sales of $18.3 million total assts of $13.3 million and total debt of $4.1 million. The profit margin is 11 percent. a. What is the company's net income? b. What is the company's ROA? c. What is the company's ROE?
Anderson Enterprises has a profit margin of 5.8% on total sales of $30,200,000. The company's total assets amount to $18,500,000, and its total debt is $9,200,000. What is the firm's Return on Assets (ROA)?
A manufacturing company has a profit margin of 12% on sales of $18,000,000. The firm has total assets of $25,000,000 and total debt of $8,000,000. The after-tax interest cost on total debt is 4.5%. What is the firm's Return on Assets (ROA)? A) 9.88% B) 8.64% C) 10.12% D) 7.92%
What is Highfield profit margin? General accounting
Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of $2,000, Cost of Goods Sold of $15,000, other costs of $7,800, and an average tax rate of 34 percent. What is the firm's profit margin? Please record your answer using the following format (12.54). Record your answer to two decimal places. While the answer should be given as a percentage, do NOT place a "%" directly after the number. Do not type the parentheses: just type the number!
Please help me