Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 3, Problem 26P
a.
Summary Introduction
To calculate: The
Introduction:
Return on assets:
It is the financial ratio that shows the profitability of the firm in relation to the usage of resources. It can be computed by dividing a corporation’s net income to its total assets.
b.
Summary Introduction
To determine: The phenomenon that is shown in part (a).
Introduction:
Return on asset:
It is the financial ratio that shows the profitability of the firm in relation to the usage of resources. It can be computed by dividing a corporation’s net income to its total assets.
c.
Summary Introduction
To determine: The effect of increased income on return on assets.
Introduction:
Return on asset:
It is the financial ratio that shows the profitability of the firm in relation to the usage of resources. It can be computed by dividing a corporation’s net income to its total assets.
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Students have asked these similar questions
In January 2009, the Status Quo Company was formed. Total assets were $593,000, of which $351,000 consisted of depreciable fixed
assets. Status Quo uses straight-line depreciation of $35,100 per year, and in 2009 it estimated its fixed assets to have useful lives of
10 years. Aftertax Income has been $43,000 per year each of the last 10 years. Other assets have not changed since 2009.
a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018
Note: Input your answers as a percent rounded to 2 decimal places.
Year
2009
2011
2014
2016
2019
Return on Assets
%
%
%
%
b. To what do you attribute the phenomenon shown in part a
Increase in current assets
Annual depreciation charges
Increase in market share.
Return on assets will be
4
c. Now assume income increased by 10 percent each year. What effect would this have on your answers to perta?
In January 2009, the Status Quo Company was formed. Total assets were $586,000, of which $377,000 consisted of depreciable fixed
assets. Status Quo uses straight-line depreciation of $37,700 per year, and in 2009 it estimated its fixed assets to have useful lives of
10 years. Aftertax income has been $59,000 per year each of the last 10 years. Other assets have not changed since 2009.
a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018.
Note: Input your answers as a percent rounded to 2 decimal places.
Year
2009
2011
2014
2016
2019
Return on Assets
%
%
%
%
Complete parts a and c please thank you
Chapter 3 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
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. 4DQCh. 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...
Ch. 3 - Low Carb Diet Supplement Inc. has two divisions....Ch. 3 - Database Systems is considering expansion into a...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Dr. Zhivà€go Diagnostics Corp.’s income...Ch. 3 - The Haines Corp. shows the following financial...Ch. 3 - Easter Egg and Poultry Company has $2,000,000 in...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Baker Oats had an asset turnover of 1.6 times per...Ch. 3 - AllState Trucking Co. has the following ratios...Ch. 3 - Front Beam Lighting Company has the following...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Jerry Rice and Grain Stores has $4,780,000 in...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Jim Short’s Company makes clothing for schools....Ch. 3 - The balance sheet for Stud Clothiers is shown...Ch. 3 - The Lancaster Corporation’s income statement is...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - The Global Products Corporation has three...Ch. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - The following information is from Harrelson...Ch. 3 - Using the financial statements for the Snider...Ch. 3 - Given the financial statements for Jones...Ch. 3 - Prob. 2WE
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