EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 3, Problem 2P
a)
Summary Introduction
To determine: Total shareholders’ equity when net profit is 3%.
b)
Summary Introduction
To determine: Total shareholders’ equity when net profit is 5%.
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General Accounting
Pribyl Corporation has provided the following financial data:
Total assets
Total stockholders' equity
Income Statement
For the Year Ended December 31, Year 2
$
Sales (all on account)
Cost of goods sold
Gross margin
Operating expenses
Net operating income
Interest expense
Net income before taxes
Income taxes (36%)
Net income
a. Net profit margin percentage
b. Gross margin percentage
c. Return on total assets
d. Return on equity
%
1,285,000
727,000
558,000
510,846
Required:
a. What is the company's net profit margin percentage for Year 2?
b. What is the company's gross margin percentage for Year 2?
c. What is the company's return on total assets for Year 2?
d. What is the company's return on equity for Year 2?
Note: Round your answers to 2 decimal places.
%
%
47,154
17,500
29,654
10.675
$ 18,979
$ 1.496.000
$ 1,033,000
$ 1,470,000
$ 1,020,000
Assume you are given the following relationships for the Haslam Corporation:Sales/total assets 1.2Return on assets (ROA) 4%Return on equity (ROE) 7%Calculate Haslam’s profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.
Chapter 3 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 3 - Prob. 1QTDCh. 3 - Prob. 2QTDCh. 3 - Prob. 3QTDCh. 3 - Prob. 4QTDCh. 3 - Prob. 5QTDCh. 3 - Prob. 6QTDCh. 3 - Prob. 7QTDCh. 3 - Prob. 8QTDCh. 3 - Prob. 9QTDCh. 3 - Prob. 10QTD
Ch. 3 - Prob. 11QTDCh. 3 - Prob. 12QTDCh. 3 - Prob. 13QTDCh. 3 - Prob. 14QTDCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21P
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