The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company. To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

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Answer 1

Question

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

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Answer 2

Question

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

Expert Solution & Answer

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Answer 3

Question

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

Expert Solution & Answer

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See solution

Answer 5

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

Answer 6

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

Answer 7

Chapter 13, Problem 13.3P

1.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

To calculate: Return on sales, asset turnover and return on assets ratios for the year just completed.

Answer 8

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

Answer 9

2.

To determine

Introduction:The calculation of the asset turnover ratio is made to measure the efficiency of the company to use its assets in generating sales. The sales of the company are used to divide the average total assets to calculate the asset turnover ratio.

To calculate: The asset turnover ratio for next year to achieve a goal of a 20% increase in sales.

Answer 10

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

Answer 11

3.

To determine

Introduction:The calculation of return on assets is made to measure the efficiency of the company to earn net income by using the average total assets. The net income of the company is used to divide the average total assets to calculate the return on asset ratio.

To calculate: The amount of net income needed in next year to achieve a 15% return on total assets.

Answer 12

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

Answer 13

4.

To determine

Introduction:The accounting ratios of a company are calculated with the help of financial data presented in the financial statements of the company. Accounting ratios help in measuring the profitability and efficiency of the company.

The reasonableness of the company’s goals. Also, determine the points on which the company should focus to achieve its goals.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 13 - Quiz 2: Solvency Debt-to-equity ratio Times...Ch. 13 - Inventory Analysis The following account balances...Ch. 13 - Prob. 13.5E Ch. 13 - Prob. 13.6E Ch. 13 - Prob. 13.3P Ch. 13 - Comparing Two Companies in the Same Industry:...

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