Answered: BloBeans GreenKale Average total…

Business

Accounting

BloBeans GreenKale Average total assets... Net sales.... $187,500 $150,000 75,000 60,000 Net income 15,000 9,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following table shows some selected financial information of TRC Company. According to the given…

A: The operating profit is calculated as difference between gross profit and operating expenses.

Q: Sher Manufacturing Pty Ltd has two retail divisions., which have the following reported results for…

Q: Given the following data, compute the Survival Revenues (SR) for a corporation which sells Black &…

A: Survival revenue indicates the amount of revenue that a corporation requires to earn in order to…

Q: Hello, I have the following question. Shown here is an income statement in the traditional format…

A: Calculate total variable expense per unit, total fixed costs, and selling price per unit

Q: A service company has the following financial information (in millions of $)a. What is the profit…

A: The amount arising out of the difference of the sales value and associative costs for sale is known…

Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…

A: Financial ratios are created using financial statement figures to provide meaningful information…

Q: A condensed income statement for Corolla Corporation and a partially completed vertical analysis are…

A: There are two type of analysis prepared by the management which are, (1) Vertical income analysis…

Q: a. Denali Limited, a manufacturing company, had the following income statement information: Revenue…

A: Gross profit refers to the profit a company makes after the consideration of all the expenses…

Q: ollux Company had the following income statement for last year: Sales $360,000 Less: Cost of…

A: Gross profit margin is one of a profitability ratio which helps management to identify or analyze…

Q: Which of the following statements is the most reasonable conclusion from the given information below…

A: Ratios are the financial measure which are used to measure the growth and performance of the company…

Q: Papa’s Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly…

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: Below are several financial statement items for fiscal year 2013 for two grocery chains, Whole Foods…

A: Financial ratios are the measures that are used to estimate and determine the financial performance…

Q: Profitability Analysis Kolby Enterprise reports the following information on its income statement:…

A: Gross profit is one of the measures of company's profitability and is calculated by subtracting the…

Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…

A: According to Dupont formula, Return on Investment = Profit margin * Asset Turnover

Q: Jef Doyle is evaluating results for two separate business segments under his control. Selected…

A: SOLUTION- RETURN ON INVESTMENT- IT IS A PERFORMANCE MEASURE USED TO EVALUATE THE EFFICIENCY AND…

Q: The following information relates to Paterno Company: If a manager at Paterno desired to determine…

A: Degree of Operating Leverage = Contribution Margin / Net income

Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…

A: a) Total Asset Turnover Ratio: i) Carson Inc = ( Net Sales / Total asset ) = 48,000 /24,000 = 2 ii)…

Q: Hel Edison Co. reported the following for the current year: Net sales Cost of goods sold Net income…

A: Average Total assets = (Beginning Total assets + Ending Total assets) / 2 =(60000+68000)/2 = $64,000

Q: The following table represents the annual trend of net profit of two different companies The…

Q: Some financial data for each of three firms are as follows: 1. JEFFERSON JAKE'S LAWN CHAIRS SARASOTA…

A: a) Profit for each company is revenue minus variable and fixed cost.Answer: Company JLC =…

Q: The information for three businesses operating in the same industry is provided in the table that…

A: Net profit margin: That margin which is the on the basis of the compare the net income on sales.…

Q: Use the following information to answer #7 and #8 An investment banker is analyzing two companies as…

A: Operating Leverage: Operating leverage is a cost-accounting formula that measures the degree to…

Q: Given the following information for Smashville, Inc., construct an income statement for the year:…

A: Income statement is one of the financial statement that is being prepared by the business for review…

Q: Located below is a sample from the income statement for Walkout Ltd. Sales revenue 200,000 (110,000)…

A: Break even in $ = Total Fixed Cost / Contribution Margin Ratio Break even in units = Total Fixed…

Q: Brutus is a division of Madam Medusa's Pawn Shop/Boutique, Inc. Last year, the division generated…

A: For every dollar of sales revenue generated, $0.056 of income is earned. ($609,840 / $3,000,000)…

Q: LaLa Company has income from operations of $23,280, invested assets of $97,000, and sales of…

A: ROI measures the business income in respect to the investment in the business. Higher ROI is…

Q: Megamart, a retailer of consumer goods, provides the following information on two of its departments…

A: Profit Margin = Net income / Sales Investment Turnover = Sales / Average Invested Assets

Q: Based on the following data, which company is the most profitable? Company A Company B Company C…

A: The question is related to most Profitable company. The Profitability of a business is evaluated by…

Q: Ganga manufacturing company's Management Accountant wants to determine the profit for the company.…

A: Profit is calculated by deducting variable cost and fixed cost from the sales value while…

Q: Develop a profit-and-loss statement for the Westgate division of North Industries. This division…

Q: AllState Trucking Co. has the following ratios compared to its industry for 2007.…

A: Return on Asset of the company is calculated as Net Income by total assets and helps in assessing…

Q: Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its…

A: The formula to compute return on investment (ROI) based on the net book value (NBV) as follows:

Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…

A: Return on Investment is a ratio which is used by companies to measure financial performance. In…

Q: Please send answer in chart set up Megamart, a retailer of consumer goods, provides the following…

A: Solution: (1). Return on investment Choose numerator / Choose denominator = Return on…

Q: Alydar, Inc., manufactures and sells automotive tools through three divisions: Eastern, Southern,…

A: Note: Some fixed cost are not allocable to the segment that type of cost are called Common fixed…

Q: Augustus Electrical Company has 2 divisions, one in Georgetown and one in Berbice Guyana and…

A: Return on investment (ROI) is a relative measure to measure a divisional performance in the…

Q: Required information [The following information applies to the questions displayed below] Papa's…

A: In This Numerical has Covered the Concept of Ratio Analysis. Return on assets measures how…

Q: es Shown here is an income statement in the traditional format for a firm with a are shown: Revenues…

A: Since we answer up to three subparts, we will answer the first three. Please resubmit the question…

Q: Based on the information below, calculate the profit margin for Starbuck’s and Dunkin and choose the…

A: Profit margin is a profitability ratio. Profit margin is one of the important ratios being used by…

Q: Marshall’s Clothing Company has total assets of $90 million, ROA of 24%, ROE of 21% and a net profit…

A: Given, Total assets $90 million ROA is 24% Net profit margin is 12%

Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…

A: Profit margin means where profit is divided with sales and percentage is found out. Investment…

Q: Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: A Vegetable Company has the following results: Net sales sh6,000,000 Net total assets sh4,000,000…

A: Return on Equity = Net IncomeShareholder's equity Retention ratio = Net Income - Dividend Net Income…

Question

Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size.
1. Compute the profit margin and the return on total assets for both companies.
2. Based on analysis of these two measures, which company is the preferred investment?

BloBeans
GreenKale
Average total assets...
Net sales....
$187,500
$150,000
75,000
60,000
Net income
15,000
9,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

(in millions) Net Income Total Assets Total Liabilities Total RevenuesExpedia $ 723 $ 15,504 $ 10,574 $ 6,672Priceline 2,551 17,421 8,625 9,224How would I figure out the net profit margin for these
Amir Company’s net income and net sales are $18,000 and $1,100,000, respectively,and average total assets are $100,000. What is Amir’s return on assets?a. 20.0%b. 18.0%c. 3.7%d. 7.0%
If the gross profit 196 000 ID, other revenue and gains 4 360 ID , operating expenses 143.900 ID, net purchases 1200000ID the net profit is:
A2 aii Use the following information for Delta Corporation: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a constant…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4–20Y8 Return on total assets 28%…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4–20Y8 Return on total assets 28%…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4–20Y8 Return on total assets 28%…
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
24) Given these facts, calculate return on assets: Sales................................................ $8,200,000 Net Income............................................ 3,050,000 Average Total Assets.............................................. 7,100,000 Average Total Liabilities........................................ 3,500,000 A. 22%. B. 43%. C. 85%. D. 87%.
Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000 You are required to:iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC
Question: Sales: $100 000 Purchase: $45 000 Sales returns: $20 000 Purchase returns: $5 000 Current Assets: $55 000 Current Liabilities:$5000 required: a) Calculate net sales. b) Calculate net purchases. c) Calculate working capital.
3) Given the following information, calculate the ROE. Sales = $350,000; Net Income = $50,000; Total assets = $500,000; D/E = 1.5. Multiple Choice 20% 10% 15% 25% 30%