The asset turnover when the profit margin is 7 % and return on assets is 25.20 % . Introduction: Asset turnover: It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5 percent and its return on assets (investment) is 22.5 percent. What is its assets turnover? (Round your answer to 2 decimal places.) b. If the Butters Corporation has a debt-to-total-assets ratio of 55.00 percent, what would the firm's return on equity be? (Input your answer as a percent rounded to 2 decimal places.) c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 50.00 percent? (Input your answer as a percent rounded to 2 decimal places.)

Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 15.5 percent. What is its assets turnover? Note: Round your answer to 2 decimal places. Assets turnover ratio b. If the Butters Corporation has a debt-to-total-assets ratio of 25.00 percent, what would the firm's return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. Return on equity % Return on equity times c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 20.00 percent? Note: Input your answer as a percent rounded to 2 decimal places. $

General Accounting

Answer 2

Question

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Answer 6

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

Answer 7

Chapter 3, Problem 15P

a.

Summary Introduction

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

Answer 8

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 9

b.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-asset ratio is 50%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 10

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Answer 11

c.

Summary Introduction

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 3 - If we divide users of ratios into short-term...Ch. 3 - Explain how the Du Pont system of analysis breaks...Ch. 3 - If the accounts receivable turnover ratio is...Ch. 3 - Prob. 4DQ Ch. 3 - Is there any validity in rule-of-thumb ratios for...Ch. 3 - Why is trend analysis helpful in analyzing ratios?...Ch. 3 - Inflation can have significant effects on income...Ch. 3 - What effect will disinflation following a highly...Ch. 3 - Why might disinflation prove favorable to...Ch. 3 - Comparisons of income can be very difficult for...

The asset turnover when the profit margin is 7 % and return on assets is 25.20 % . Introduction: Asset turnover: It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

Solution Summary: The author explains how to calculate the return on equity of Butters Corporation when the debt-to-asset ratio is decreased to 35%.

Videos

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Want to see the full answer?

Chapter 3 Solutions

The asset turnover when the profit margin is 7 % and return on assets is 25.20 % . Introduction: Asset turnover: It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

Solution Summary: The author explains how to calculate the return on equity of Butters Corporation when the debt-to-asset ratio is decreased to 35%.

Videos

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% . Introduction: Asset turnover: It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%. Introduction: Return on equity: It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.

Want to see the full answer?

Chapter 3 Solutions

To calculate: The asset turnover when the profit margin is 7% and return on assets is 25.20% .

Introduction:

Asset turnover:

It is a ratio that computes that competence a firm has to use its assets for the generation of income or sales revenue for the firm.

To determine: The return on equity of Butters Corporation when the debt-to-total-assets ratio is decreased to 35%.

Introduction:

Return on equity:

It shows the financial performance of a firm by dividing the net income with shareholdersâ€™ equity.