multiplier is 1.64. Using DuPont analysis, determine if the company's return on equity is above or below the industry average and what factor causes the difference?
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Q: True
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- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.In the current year, Harrisburg Corporation collected 100,000 from its customers and paid out 30,000 to suppliers, 20,000 to employees, and 8,000 for income taxes. Using the direct method, prepare the operating activities section of its statement of cash flows based on this information.The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
- XYZ Company had cash of $200,000, Accounts payable of $150,000, Plant & Equipment of $350,000, Inventory of $75,000 and other assets of $90,000. XYZ's liabilities consisted of long-term debt of $350,000, non-current portion of notes payable of $65,000, Accounts Payable of $ 135,000 and Accrued Expenses of $65,000. Calculate the working capital and the current ratio based upon this information.Given the following information, construct the firm’s balance sheet: Cash and cash equivalents $ 530,000 Accumulated depreciation on plant and equipment 1,050,000 Plant and equipment 4,760,000 Accrued wages 350,000 Long-term debt 4,860,000 Inventory 7,000,000 Accounts receivable 4,140,000 Preferred stock 620,000 Retained earnings 8,166,000 Land 2,630,000 Accounts payable 1,730,000 Taxes due 110,000 Common stock $ 18 par Common shares outstanding 98,000 Current portion of long-term debt $ 410,000 Round your answers to the nearest dollar. Corporation X Balance Sheet as of XX/XX/XX Assets Liabilities and Owners' Equity Cash and cash equivalents $ Accounts payable $ Accounts receivable Taxes due Inventory Accrued wages Total current assets $ Current portion of long-term debt $ Land Total current liabilities Plant and equipment Long-term debt…The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Current assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.
- The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Fixed assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.You are given the following information for Smashville, Inc. Cost of goods sold: $175,000 Investment income: $2,800 Net sales: $237,000 Operating expense: $42,000 Interest expense: $7,400 Dividends: $10,000 Tax rate: 21 % Current liabilities: $18,000 Cash: $21,000 Long-term debt: $10,000 Other assets: $36,000 Fixed assets: $89,000 Other liabilities: $5,000 Investments: $12,000 Operating assets: $24,000 During the year, Smashville, Inc., had 5,000 shares of stock outstanding and depreciation expense of $20,000. At the end of the year, Smashville stock sold for $57 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)Firm O has accounts receivable of $51,000, cash of $24,600, property, plant, and equipment of $420,000, merchandise inventory of $47,200, accounts payable of $23,100, other accrued liabilities of $8,500, common stock of $350,000, and retained earnings of $161,200.
- Edinburgh Exports Inc.’s Pretransaction Statement of Financial Condition Cash $15,000 Accounts payable $20,000 Marketable securities 10,000 Wages payable 20,000 Accounts receivable 470,000 Taxes payable 10,000 Inventory 500,000 Notes payable 50,000 Prepaid expenses 5,000 Total current liabilities 100,000 Total current assets 1,000,000 Long-term debt 500,000 Total liabilities 600,000 Gross plant and equipment 1,500,000 Common stock 150,000 Accumulated depreciation 500,000 Capital paid in excess of par 350,000 Net plant and equipment 1,000,000 Retained earnings 900,000 Total equity 1,400,000 Total assets $2,000,000 Total debt and equity $2,000,000 Edinburgh Exports Inc.’s Pretransaction Statement of Financial Performance Sales $5,000,000 Less: Cost of goods sold¹ 2,000,000 Gross profit 3,000,000 Less: Operating expenses 600,000 Operating profit (EBIT) 2,400,000 Less: Interest expense² 33,000 Earnings before taxes (EBT)…In 2x20, ABC Company has the following data on its statement of financial position:Cash - 15,000,000 Marketable Securities - 20,000,000 Property, Plant, Equipment - 30,000,000 Long term debt - 36,000,000 Inventory - 25,000,000 Short term debt - 15,000,000 Accounts payable - 15,000,000 During this year, the company repoted a 12,000,000 of net income. The company's total asset in the previous year was 60,000,000. Requirement: Compute for: Debt to asset ratio Return on assetsYou are given the following information for Smashville, Inc. Cost of goods sold: $259,000 Investment income: $3,100 Net sales: $402,000 Operating expense: $94,000 Interest expense: $7,400 Dividends: $11,000 Tax rate: 21 % Current liabilities: $20,000 Cash: $21,000 Long-term debt: $7,000 Other assets: $39,000 Fixed assets: $134,000 Other liabilities: $5,000 Investments: $15,000 Operating assets: $26,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share