3rd Edition

ISBN: 9780137391707

Author: GORDON

Publisher: PEARSON

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Chapter 5, Problem 5.12E

Profitability Analyses. Use the following excerpt from Dragonfly Corporation’s balance sheet and its income statement to compute Dragonfly’s profit margin and return on assets for 2018 and 2019 Comment on Dragonfly's profitability and changes in profitability from 2018 to 2019. Dragonfly's total assets at the end of 2017 were $157,534 million.

Assets (dollars in millions)	2019	2018
Current Assets
Cash and Cash Equivalents	$ 13,420	$ 19.355
Marketable Securities	7,623	2.394
Accounts Receivable Trade, Net	22,120	20,872
Inventories	47,415	45,630
Prepaid Expenses and Other Receivables	1,312	1,264
Total Current Assets	91,890	89.515
Property, Plant, and Equipment, Net	67,045	65.762
Other Assets	3,773	3,770
Total Assets	$162,708	$159,047
(in millions)	2019	2018
Sales	$ 63,762	$ 61,890
Cost of Goods Sold	33,092	30,096
Gross Profit	30.670	31,794
Selling. General, and Administrative Expenses	15,335	15,897
Research and Development Expense	7,052	7,844
Interest Expense	145	142
Earnings Before Taxes	8,138	7,911
Income Tax Expense	2,848	2,769
Net Income	$ 5,290	$ 5,142

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Chapter 5, Problem 5.11E

Chapter 5, Problem 5.1P

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Chapter 5 Solutions

INTERMEDIATE ACCT.-MYLAB COMBO ACCESS

Ch. 5 - What are the three limitations of the income...Ch. 5 - In what way is the income statement useful for...Ch. 5 - Prob. 5.3Q Ch. 5 - Prob. 5.4Q Ch. 5 - What management behavior does the term earnings...Ch. 5 - What is the difference between permanent and...Ch. 5 - Prob. 5.7Q Ch. 5 - Prob. 5.8Q Ch. 5 - Prob. 5.9Q Ch. 5 - Prob. 5.10Q

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