Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $508,780 Interest expense 89,780 Average total assets 5,160,000 Determine the return on total assets. If required, round the answer to one decimal place.

Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $508,780 Interest expense 89,780 Average total assets 5,160,000 Determine the return on total assets. If required, round the answer to one decimal place.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9BE

See similar textbooks

Related questions

Q: Consider a European call and a European put with the same strike price and time to maturity. Show…

A: Explanation: Let c1= Value of the call p1= Value of the put When Volatility=σ1 Similarly Let c2=…

Q: 3.5 The following table gives the prices of four bonds. Bond # Bond Principal ($) 1 100 2 100 3 100…

A: The bond refers to the instrument used for raising debt capital from investors. A bond is different…

Q: entering the workforce plans to make monthly contributions to a retirement account in the amount of…

A: The FV of the investment refers to the cumulative value of its cash flows at a future date assuming…

Q: (Working with the income statement) if the Marifield Steel Fabrication Company eamed $525,000 in net…

A: Given : - Net Income = $525000Number of Shareholders : 104000.

Q: (Corporate income tax) G. R. Edwin Inc. had sales of $5.83 million during the past year. The cost of…

A: Tax liability refers to the amount of money a taxpayer or entity owes to the government based on…

Q: Someone needs to borrow $16,000 to buy a car and the person has determined that monthly payments of…

A: Time, the value of money refers to the concept used for estimating the values of current assets,…

Q: Value of an Annuity Using the appropriate tables, solve each of the following: (Click here to access…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Sales (in millions) TVs 2 0 Computers Phones 2017 2.8 1.2 4.5 2018 2.5 1.1 4.8 TVS In which year…

A: The product sales or revenue is said to be the total benefit that generate for the company. The…

Q: Calculate the risk premium for each of the following rating classes of long-term securities,…

A: Given, Corporate Nominal interest rate = 4.92% Treasury rate (default free rate) = 4.52%

Q: Net present value and internal rate of return – Many businesses use both present value and internal…

A: Net present value (NPV) and internal rate of return (IRR) are two of the most popular discounting…

Q: Develop a general-purpose Excel spreadsheet to calculate the balance due, principal payment, and…

A: Amortization refers to the process of gradually paying off a debt, such as a loan, through regular…

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: The idea of the time value of money (TVM) holds that a quantity of currency is considerably more…

Q: Addie wants to buy a car that interest rate of 4.24 percent. and if her first payment to Bc O 17.90…

A: Present Value refers to the current value of the loan or mortgage amount if paid all at once on the…

Q: 4.You expect to need $22,500 in 4 years to finance the wedding of your daughter. How much should you…

A: Deposited amount refers to the present value of an asset that will be present at some future date…

Q: You would like to be holding a protective put position on the stock of XYZ Co. to lock in a…

A: Put option is one of the options which gives the holder the right to sell the assets underlying the…

Q: Daysha bought a house with a mortgage of $395,100. The mortgage is being financed with an interest…

A: We need to use NPER function in excel to calculate number of payments in both ordinary annuity and…

Q: Fingen's 15-year, $1,000 par value bonds pay 15 percent interest annually. The market price of the…

A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…

Q: b. Using the options in the following table construct a long call spread (bull spread) strategy,…

A: Two call options with different strike prices have been provided. A long call (bull spread) has to…

Q: Consider two local banks. Bank A has 89 loans outstanding, each for $1.0 million, that it expects…

A: Expected returns are calculated by taking the product of the returns & the probability of their…

Q: How to find diluted EPS?

A: When calculating diluted earnings per share (EPS), the possibility of dilution due to conversion of…

Q: Consider an investment of $X. Suppose that you are able to earn 10% a year on your investment rather…

A: Given: Interest rate = 10% Interest rate = 5% Years = 7 Investment amount = $X

Q: What about the salvage value of $800 at the end?

A: Salvage value refers to the estimated residual value of an asset at the end of its useful life. It…

Q: Create the amortization schedule for a loan of $5,000, paid monthly over two years using an 8…

A: Here,Loan Amount is $5,000Time Period of Loan is 2 yearsInterest Rate on Loan is 8%Compounding…

Q: insley, Incorporated, wishes to maintain a growth rate of 13 percent per year and a debt-equity…

A: The ratio analysis provide insights into the company's financial health, performance, and…

Q: 8- Patient rights and privacy:

A: Patient rights and privacy in health insurance are crucial components of healthcare systems, aiming…

Q: Laurel Enterprises expects earnings next year of $4.29 per share and has a 50% retention rate, which…

A: Earning per share = $4.29 Payout ratio = 100%-Retention ratio = 100%-50%…

Q: Consider a two-factor Arbitrage Pricing Theory (APT) model, r₁ = a₁ + b₁₁ifi + b2,if2 + €₁, with the…

A: The APT theory refers to the relation between the return provided by the asset and the factors that…

Q: Case Study Ceylon Coffee Vendors PLC Ceylon Coffee Vendors PLC is a company that installs and…

A: Calculation used to evaluate the investment and financing decisions that involve cash flows…

Q: An investor is seeking a bond issue offering call protection. An issue having which features would…

A: Call premium said to the payment made to the investor of bond holders if the security is early…

Q: The stockholders required rate of return is 6.0% and the stock has a beta of -60. The risk-free rate…

A: Required rate of return =6.0% Beta=-60 Risk-free rate=8% Required: Market Return=?

Q: rate. Four years ago, ZXY deposited $2,820 in an account that has earned and will earn 15.00 percent…

A: 1. Compound interest. F = A × ( 1+r)n Where, F =future value including compound interest. A =…

Q: (Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $319,000. Calculate…

A: Taxable Income = $319,000

Q: Graph the value of your portfolio as a function of the relevant stock price. Please create a graph…

A: The options refer to the derivative instruments that provide their holders the choice of…

Q: The following information pertains to Monroe Company: Month Sales Purchases January $62,000 $33,000…

A: Purchases may be made in cash or by credit. The credit purchases have to be paid for in the months…

Q: CORRECT ANSWERS ARE ?? = £2,276.55 and ? = £4,724.73 NO TABLES, ONLY FORMULAS PLEASE

A: Here,Total Time Period of Payments is 10 yearsDeposit of £200 per year for first three yearsDeposit…

Q: What outcomes are possible with speculative risk?

A: Speculative risk is a form of risk in which the outcome is unknown and there is a chance of both…

Q: 818

A: Dividend yield= dividend/ market price*100 Burfroot enterprises = Nil Majere Holdings= 1.5/115*100…

Q: Walnut Co held its quarterly dividend meeting on December 8. At that meeting, the directors decided…

A: Cash dividends are distributions of profits to shareholders, typically paid out of a company's…

Q: Question It is expected that a 2-year term project will generate revenues of $5 million at the end…

A: Revenues at the end of the second year = $5 millionCosts and expenses at the end of the first year =…

Q: Stock Valuation and Cash Flows Full Boat Manufacturing has projected sales of $115 million next…

A: Discounted Cash Flow valuation estimates a share's intrinsic value by discounting projected future…

Q: Consider a home mortgage of $150,000 at a fixed APR of 6% for 30 years. a. Calculate the monthly…

A: To calculate the monthly payment for a mortgage, we can use the formula for the fixed monthly…

Q: Let S = $100, K = $95, r = 8%, σ = 0.3, 6 = 0, T = 1 year. The stock price is modeled by a 3-period…

A: A put option refers to a derivative that provides its holder the choice to sell the associated asset…

Q: Given the financial data for four mutually exclusive alternatives in the table below, determine the…

A: The incremental rate of return, also known as the internal rate of return (IRR) on an incremental…

Q: Suppose you can afford $500 monthly payments and you will be able to pay $9000 as a balloon payment…

A: Balloon payments refer to the lump sum amount that is to be paid at the end of the period of the…

Q: Adventure is a company that manufactures and sells gears and equipment for outdoor activities such…

A: Enterprise value refers to the total value of company including its market value of equity and all…

Q: All of the following are consequences of disposing a capital cost asset, EXCEPT: a. Recapture of…

A: When it comes to managing finances and assets, understanding the concept of disposing of a capital…

Q: Equity is one of the key elements of partnering and it includes all the following except Select one:…

A: Equity is merely the worth of an investor's risk in a the organisation. The market value of the…

Q: Wanda Maximoff has been asked to compare the YTM of a zero-coupon bond that is currently being sold…

A: Price of zero coupon bond can be calculated by the following formula price of a zero coupon…

Q: Consider a pension plan that will pay $10,000 once a year for a 5-year period (5 annual payments).…

A: Retirement income is the money one receives after they stop working, either through savings,…

Q: The YTM on a bond is the interest rate you earn on your investment if interest rates don't change.…

A: Bonds are debt instruments issued by governments, municipalities, and corporations to raise capital.…

Question

Subject-accounting

Return on Total Assets
A company reports the following income statement and balance sheet information for the current year:
Net income
$508,780
Interest expense
89,780
Average total assets
5,160,000
Determine the return on total assets. If required, round the answer to one decimal place.
10 X %

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction and initial data

VIEW

Step 2: Calculation for the return on total assets

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 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, finance and related others by exploring similar questions and additional content below.

Similar questions

Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): What is Tootsie Roll’s percent of the cost of sales to sales? Round to one decimal place.
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation: a. For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. Comment on the results of your horizontal analysis in part (a). c. Based upon Exercise 2-23, compare and comment on the operating results of Target and Costco for the recent year.
The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and the total operating expenses?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
The condensed income statements through income from operations for Dell Inc. and Apple Inc. for recent fiscal years follow (numbers in millions of dollars): Prepare comparative common-sized statements, rounding percents to one decimal place. Interpret the analyses.
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. The percent that a company adds to its cost of sales to determine the selling price is called a markup. That is Hershey’s markup percent? Round to one decimal place.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Ratio of liabilities to stockholders equity and times interest earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: The income before income tax expense was 480,000 and 420,000 for the current and previous years, respectively. A. Determine the ratio of liabilities to stockholders equity at the end of each year. Round to one decimal place. B. Determine the times interest earned ratio for both years. Round to one decimal place. C. What conclusions can be drawn from these data as to the companys ability to meet its currently maturing debts?
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): What is the percentage of net income to sales for Tootsie Roll? Round to one decimal place.