You are given the following information for Smashville, Inc. Cost of goods sold: $ 224,000 Investment income: $ 2,400 Net sales: $ 389,000 Operating expense: $ 90,000 Interest expense: $ 7,400 Dividends: $ 15,000 Tax rate: 35 % Current liabilities: $ 24,000 Cash: $ 21,000 Long-term debt: $ 24,000 Other assets: $ 40,000 Fixed assets: $ 136,000 Other liabilities: $ 5,000 Investments: $ 44,000 Operating assets: $ 38,000 Calculate the gross margin, the operating margin, return on assets, and return on equity.
You are given the following information for Smashville, Inc. Cost of goods sold: $ 224,000 Investment income: $ 2,400 Net sales: $ 389,000 Operating expense: $ 90,000 Interest expense: $ 7,400 Dividends: $ 15,000 Tax rate: 35 % Current liabilities: $ 24,000 Cash: $ 21,000 Long-term debt: $ 24,000 Other assets: $ 40,000 Fixed assets: $ 136,000 Other liabilities: $ 5,000 Investments: $ 44,000 Operating assets: $ 38,000 Calculate the gross margin, the operating margin, return on assets, and return on equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are given the following information for Smashville, Inc.
Cost of goods sold: $ 224,000
Investment income: $ 2,400
Net sales: $ 389,000
Operating expense: $ 90,000
Interest expense: $ 7,400
Dividends: $ 15,000
Tax rate: 35 %
Current liabilities: $ 24,000
Cash: $ 21,000
Long-term debt: $ 24,000
Other assets: $ 40,000
Fixed assets: $ 136,000
Other liabilities: $ 5,000
Investments: $ 44,000
Operating assets: $ 38,000
Calculate the gross margin, the operating margin, return on assets, and return on equity.
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