Leon Company uses equity spread in evaluating managerial performance. At year end, the total shareholders’ equity was P10,000,000. During the year, the shareholders’ equity has a net increase of P2,000,000. Net income was P3,000,000. The cost of equity was 8% and the WACC was 10%. What is the equity spread? a. 800,000 b. Answer not given c. 1,840,000 d. 2,026,667 e. 640,000

Q: (a) Calculate and Closing stock from the following information:-Total sales Rs 600000Gross Profit…

A: Given, Gross profit= 25% of sales                              =25% of 600000= 150000 Cost of goods…

Q: Last year, Thomas Co. had a profit margin of 10%, total assets turnover of 0.5, and a debt ratio of…

A: Given: Last year data -  Profit margin =10%  ----------------------(Eq I) Total Asset Turnover =…

Q: Griffins Goat Farm, Inc., has sales of $681,000, costs of $343,000, depreciation expense of $87,000,…

A: Given information: Sales amounted to $681,000 Costs of $343,000 Depreciation expense is $87,000…

Q: The most recent financial statements for Cardinal, Incorporated, are shown here: Balance Sheet $…

A: The current costs/sales ratio, dividend payment ratio, and assets/sales ratio can be used to…

Q: 6. From the following data, calculate (a) Gross proft ratio (b) Net profit ratio (c) Return on…

A: Gross Profit ratio = Gross Profit/Net Sales Net Profit Ratio = Net Profit/Net Sales Return on…

Q: Elite Trailer Parks has an operating profit of $251,000. Interest expense for the year was $33,900;…

A: Given, Operating profit of $251,000  Interest expense is $33,900

Q: Razor Trading applies a mark up of 40%. At the start and end of the year, inventory was valued at…

A: Sales - Sales is the amount including profit made by the company over and above the cost incurred on…

Q: The most recent financial statements for Locke, Inc., are shown here: INCOME STATEMENT $51,000…

A: Given data; new sales ( S1) = $ 59160 dividend paid = $2800

Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The…

A: Turnover ratio = Total Sales / Capital employed Hence Capital employed = Total Sales / Turnover…

Q: Please answer all. From a company we get the following: Capital employed 20,000,000 dollar Debt /…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A summary of the statement of financial position of M at 31 March 20X0 was as follows $'000 Total…

A: Formula: Return on capital employed = Operating profit / Capital Division of operating profit with…

Q: Your company's income statement for the year ended 30 September 20X8 showed the following: $'000…

A: We have the following information: Net profit before interest and tax: $1,200 Interest: $200…

Q: JHOPE "I am your hope" Company has 10% net profit margin on sales in previous years and exp same…

A: Additional fund needed can be calculated by using this equation Additional funds needed(ANF)…

Q: net

A: Introduction: The term net income can be defined as the excess of revenues over the expenses of the…

Q: The balance sheet of ATLF, Inc. reports total assets of $1,950,000 and $2,050,000 at the beginning…

A: Profit margin ratio is calculating by dividing the net income by net sales.

Q: Use the following information to answer question 4-5. Operating data of Peter Company for last year…

A: 4. Turnover  = sales / Average operating assets            1.5 = $900,000 / Average operating assets…

Q: The board of directors of a human resources outsourcing company has declared a dividend of…

A: Preferred Shareholder have a preference over dividend than common shareholder. If any dividend is…

Q: Carr Auto Wholesalers had sales of $1,040,000 in 20XX, and the cost of goods sold represented 74…

A: An income statement is the one prepared by the company in a structured manner to determine the net…

Q: What is the return on capital employed (ROCE)?

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Q: The most recent financial statements for Cardinal, Inc., are shown here:   Income Statement…

A: Given information: Dividend paid amounted to $4,200 Sales projected for the next year to be $37,950

Q: Your Division recorded operating data as follows for the past two years: Sales $1,200,000…

A: Operating asset turnover ratio is form of efficiency ratio which tells us about how efficiently a…

Q: Use the information provided below to answer the question. The ratios are for last year, for ABC Inc…

A: Return on Equity=Net incomeShareholders equity

Q: What's the company's profit margin?

A: Profit Margin: This ratio tells the measurement of the business profitability. It is computed by…

Q: A company has net income of $34.10 million. Stockholders' equity at the beginning of the year is…

A: The following formula is used to calculate the return on equity ratio: Return on Equity Ratio= Net…

Q: The following information has been gathered for Malette Manufacturing: Net income $5,000,000…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $550; Net…

A: Given, Net Income = $550 Net Operating Profit After Taxes (NOPAT) = $650 Total Assets = $2,700 Short…

Q: Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $500; Net…

A: Economic value added (EVA) is also called as the economic profit of a firm or a company where the…

Q: The following information is available for Pind Co, a manufacturing company. You are provided with…

A: We have the following information: Operating Profit: $42,000 Interest Charges: $16,000 Profit…

Q: b.) From the given figures relating to the following profitability ratios for the two years: Wick…

A: The ration analysis helps to analyze the financial statements of the business. The gross profit and…

Q: Clydesdale Company has sales of $4,500,000, invested assets of $2,000,000, and operating expenses of…

A: First, compute the operating income as shown below: Operating income = Sales - Operating expense…

Q: Mars Corporation has provided the following data for Year 2:       Sales $ 1,330,000   Gross…

A: Calculation of average stockholder's equity: Year 2 = $ 1095000 Year 1 = 1060000 = ( 1095000 +…

Q: The following data are for the Akron Division of Consolidated Rubber, Inc: $920,000 $ 62,000…

A: Margin indicates the profit earning a percentage on sales. it can be calculated by dividing net…

Q: The company paid dividends of $407,440 last year. The "Investment in Buisson, S.A.," on the balance…

A: 1.  AVERAGE OPERATING ASSETS :  = ( BEGINNING TOTAL OPERATING ASSET + ENDING TOTAL OPERATING ASSET )…

Q: A firm has $5,800 in Sales. The profit margin is 4 percent. There are 5,000 shares outstanding with…

A: P/E ratio = Share Price / Earnings Per Share Earnings per share = Net Profit / No. of shares…

Q: New Mexico Lumber recently reported that its earnings per share were $3.00.  The company has 400,000…

A: EBIT stands for Earnings Before Interest and Taxes. It is a net income of company before deducting…

Q: Pharoah, Inc., has net income of $15,600,000 on net sales of $400,000,000.The company has total…

A: Computation:

Q: Company has net income of $41,500, total equity of $155,625 and total liabilities of $103,750. What…

A: Given information: Net income is $41,500 Total equity is $155,625 Total liabilities is $103,750…

Q: The figures shown in the table below are an extract from the accounts of Ridgeway (capital employed…

A: Capital employed = $1,500,000 Profit before interest and taxes = $300,000

Q: The balance sheet of ATLF, Inc. reports total assets of $950,000 and $1,050,000 at the beginning and…

A: Ratio analysis: It can be defined as a quantitative method of analyzing the financial statements of…

Q: Easter Egg and Poultry Company has $1,760,000 in assets and $608,000 of debt. It reports net income…

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: The following information has been taken from the Muscat Company: Sales return 1,450 Other revenue…

A: Gross Profit = 50,000 Repair Expenses = 10,000 Interest Expense = 5000 Income tax rate = 40℅   

Q: Oman Company has a common stock of $5,500, a paid-in surplus of $8,200, tota liabilities of $6,600,…

A: Total assets = Fixed assets + current assets = 16900 + 7200 = $24,100