Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE Model
Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE Model
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
d. Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets ,
return on assets, ROA Model, return on equity , and ROE Model
Transcribed Image Text:2019
2020
Net sales
COGS
Gross profit
Operating expenses
Depreciation
375.000 $
450.000
$
-225.000 $
-270.000
150.000 $
180.000
-46.000 $
-46.000
$
-25.000 $
-30.000
Interest
-4.000 $
-4.000
EBIT
75.000 $
100.000
Income taxes
-20.000 $
-30.000
Net income
$
55.000 $
70.000
Cash dividends
17.000 $
20.000
Transcribed Image Text:2019
2020
Cash
Account receivables
Inventories
Total current assets
Gross fixed assets
Accumulated depreciation
Net fixed assets
Total Assets
$
39.000 $
16.000
$
50.000 $
80.000
151.000 $
204.000
240.000 $
300.000
$
200.000 $
290.000
$
-95.000 $
-125.000
$
105.000 $
165.000
$
345.000 $
465.000
Accounts Payable
Bank loan
Accrued liabilities
Total current liabilities
Long term debt
30.000 $
45.000
$
20.000 $
27.000
$
10.000 $
23.000
60.000 $
15.000 $
95.000
15.000
Common stock
$
85.000 $
120.000
Retained earnings
Total liabilities and equity
185.000 $
235.000
$
345.000 $
465.000
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