Calculate the Rate of Return on Assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components.Calculate the Rate of Return on Common Stockholders’ Equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components. Grundig TechnologiesBalance Sheet(As of December 31, 2011)ASSETS20112010CashS 69,000$ 22,000Accounts Receivable$82,000S66,000Supplies$15,000$19,000Inventories$189,000$110,000$200,000$180,000Land$75,000EquipmentAccumulated Depreciation$260,000(69,000)(42,000)TOTAL ASSETS$612.000$564,000LIABILITIESAccounts Payable$ 34,000$ 47,000Unearned Rent$15,000$150,000$19,000$200,000Bonds PayableStockholders' EquityCommon Stock( $1 Par Value)Retained Earnings$164,000134,000$214,000199,000TOTAL LIABILITIES AND EQUITY$612,000$564,000Grundig TechnologiesIncome StatementFor the year ended December 31, 201iSales$560,000Cost of Goods Sold($320,000)Gross Profit$240,000General and Administrative ExpenseSelling ExpenseInterest Expense($38,000)($27,000)(S17,000)Income before Income taxes$158,000Income Tax Expense (35%)(S55,300)Net Income$102.700

return on assets indicates that how profitable a company is relative to its total assets, return on…

Grundig Technologies Balance Sheet (As of December 31, 2011) ASSETS 2011 2010 S 69,000 $82,000 $ 22,000 S6,000 Cash Accounts Receivable Supplies $15,000 $180,000 $75,000 $19,000 $189,000 $110,000 Inventories Land Equipment Accumulated Depreciation $260,000 $200,000 (69,000) (42,000) TOTAL ASSETS $612,000 $564,000 LIABILITIES S 34,000 $ 47,000 $19,000 $200,000 Accounts Payable Unearned Rent $15,000 $150,000 Bonds Payable Stockholders' Equity Common Stock($1 Par Value) Retained Earnings $214,000 199,000 $164,000 134,000 TOTAL LIABILITIES AND EQUITY $612,000 $564,000 Grundig Technologies Income Statement For the year ended December 31, 2011 Şales $560.000

Grundig Technologies Balance Sheet (As of December 31, 2011) ASSETS 2011 2010 S 69,000 $82,000 $ 22,000 S6,000 Cash Accounts Receivable Supplies $15,000 $180,000 $75,000 $19,000 $189,000 $110,000 Inventories Land Equipment Accumulated Depreciation $260,000 $200,000 (69,000) (42,000) TOTAL ASSETS $612,000 $564,000 LIABILITIES S 34,000 $ 47,000 $19,000 $200,000 Accounts Payable Unearned Rent $15,000 $150,000 Bonds Payable Stockholders' Equity Common Stock($1 Par Value) Retained Earnings $214,000 199,000 $164,000 134,000 TOTAL LIABILITIES AND EQUITY $612,000 $564,000 Grundig Technologies Income Statement For the year ended December 31, 2011 Şales $560.000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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