You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 $ 3,000
You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 $ 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
![You are given the following information for Smashville, Inc.
Cost of goods sold:
Investment income:
Net sales:
Operating expense:
Interest expense:
Dividends:
Tax rate:
Current liabilities:
Cash:
Long-term debt:
Other assets:
Fixed assets:
Other liabilities:
Investments:
Operating assets:
Gross margin
Operating margin
Return on assets
Return on equity
$174,000
$ 1,400
$379,000
$ 86,000
$
7,400
8,000
$
%
%
%
%
40%
$ 21,000
$ 21,000
$ 46,000
$ 38,000
$130,000
Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places.)
$ 3,000
$ 34,000
$ 64,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F095ea013-5eb7-4aaf-a23a-6e29389c2c79%2Fd34160d4-a563-4b21-9a60-b8b9e63695bf%2Fc4ki5hh_processed.png&w=3840&q=75)
Transcribed Image Text:You are given the following information for Smashville, Inc.
Cost of goods sold:
Investment income:
Net sales:
Operating expense:
Interest expense:
Dividends:
Tax rate:
Current liabilities:
Cash:
Long-term debt:
Other assets:
Fixed assets:
Other liabilities:
Investments:
Operating assets:
Gross margin
Operating margin
Return on assets
Return on equity
$174,000
$ 1,400
$379,000
$ 86,000
$
7,400
8,000
$
%
%
%
%
40%
$ 21,000
$ 21,000
$ 46,000
$ 38,000
$130,000
Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places.)
$ 3,000
$ 34,000
$ 64,000
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