Nobility Homes, Incorporated, is a small maker of manufactured homes sold throughout the state of Florida. The following are selectedfinancial data for the company for the period 2012-2016.Year201220132014201520162012%20130.4100.00.441.0917.4Profit margin (8)Retention ratio (8)Asset turnover (X)Financial leverage (X)Growth rate in sales (t)Source: Data from Nobility Homes 2012 to 2016 annual reportsa. Calculate Nobility Homes' annual sustainable growth rate for the years 2012 through 2016.Note: Round your answers to 1 decimal place.Sustainable Growth Rate%%%6.7 %20145.0100.00.491.1316.920155.4100.00.541.1614.49.4100.00.5920161.2130.917.4100.00.641.2922.4

The asset turnover indicates the sales or revenues generated by the assets. When the assets turnover…

Nobility Homes, Incorporated, is a small maker of manufactured homes sold throughout the state of Florida. The following are selected financial data for the company for the period 2012-2016. Year 2012 2013 2014 2015 2016 % % 6.7% 2012 % Profit margin (8) Retention ratio (8) Asset turnover (X) Financial leverage (X) Growth rate in sales (1) Source: Data from Nobility Homes 2012 to 2016 annual reports a. Calculate Nobility Homes' annual sustainable growth rate for the years 2012 through 2016. Note: Round your answers to 1 decimal place. Sustainable Growth Rate 0.4 100.0 2013 1.09 17.4 5.0 100.0 0.49 2014 1.13 16.9 2015 5.4 100.0 0.54 2016 9.4 100.0 0.59 1.16 1.21 14.4 30.9 17.4 100.0 0.64 1.29 22.4

Nobility Homes, Incorporated, is a small maker of manufactured homes sold throughout the state of Florida. The following are selected financial data for the company for the period 2012-2016. Year 2012 2013 2014 2015 2016 % % 6.7% 2012 % Profit margin (8) Retention ratio (8) Asset turnover (X) Financial leverage (X) Growth rate in sales (1) Source: Data from Nobility Homes 2012 to 2016 annual reports a. Calculate Nobility Homes' annual sustainable growth rate for the years 2012 through 2016. Note: Round your answers to 1 decimal place. Sustainable Growth Rate 0.4 100.0 2013 1.09 17.4 5.0 100.0 0.49 2014 1.13 16.9 2015 5.4 100.0 0.54 2016 9.4 100.0 0.59 1.16 1.21 14.4 30.9 17.4 100.0 0.64 1.29 22.4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer in detail CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. The company's management team is seeking guidance on the use of financial performance measures to identify the key drivers of the company's financial performance and develop a strategy to improve it. The following data relate to the company for the year 2022: In its clothing division, the company has $6,000,000 invested in assets. After-tax operating income from sales of clothing in 2022 is $900,000. Income for the clothing division has grown steadily over the last few years. The cosmetics division has $14,000,000 invested in assets and an after-tax operating income in 2022 of $1,900,000. The weighted-average cost of capital for CarniTrin is 10% and the 2021’s after-tax return on investment for each division was 15%. The general manager of CarniTrin has asserted that in the future, managers should have their compensation structure aligned with their performance measures…