Akerley Hospitality reports a net income of $23,000 for the year. At the beginning of the year, Akerley had total assets of $134,000. By the end of the year, total assets had increased to $328,000. a) Calculate Akerley Hospitality's return on total assets percentage for the year to two decimal places. b) Assume that Akerley Hospitality's competitors average a 165.74% return on total assets. In comparison, is Akerley's return on total assets favorable or unfavorable?

Akerley Hospitality reports a net income of $23,000 for the year. At the beginning of the year, Akerley had total assets of $134,000. By the end of the year, total assets had increased to $328,000. a) Calculate Akerley Hospitality's return on total assets percentage for the year to two decimal places. b) Assume that Akerley Hospitality's competitors average a 165.74% return on total assets. In comparison, is Akerley's return on total assets favorable or unfavorable?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
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