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Problem 3-1 DuPont Identity
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If Rogers, Incorporated, has an equity multiplier of 1.48, total asset turnover of 1.8, and a profit margin of 5.8 percent, what is its |
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- RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.3 Return on assets (ROA) 4.0% Return on equity (ROE) 8.0%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.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.
- Problem 1-65A Relationships Among Financial Statements Carson Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Carsons net income or net loss for the year in each of the following independent situations: Carson declared no dividends. and its common stock remained unchanged. Carson declared no dividends and issued additional common stock for $40,000 cash. Carson declared dividends totaling $5000 and its common stack remained unchanged. Carson declared dividends totaling $20,000 and issued additional common stock for $35,000.Problem 1-62B Retained Earnings Statements The table below presents the retained earnings statements for Dillsboro Corporation for 3 successive years. Certain number are missing. Required: Use your understanding of the relationship between successive retained earnings statements to calculate the missing values (a-g).Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Lenos net income or net loss for the year in each of the following independent situations: Leno declared no dividends, and its common stock remained unchanged. Leno declared no dividends and issued additional common stock for $15,000 cash. Leno declared dividends totaling $10,000 and its common slack remained unchanged. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.
- Problem 1-62A Retained Earnings Statements The table below presents the retained earnings statements for Bass Corporation for 3 successive years. Certain numbers are missing. Required: Use your understanding of the relationship between successive retained earnings statements to calculate the missing values (a-g).Problem 3-11 Return on Equity Firm A and Firm B have debt-total asset ratios of 32 percent and 22 percent, respectively, and returns on total assets of 9 percent and 15 percent, respectively. What is the return on equity for Firm A and Firm B? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)Problem 3-2 Equity Multiplier and Return on Equity Kodi Company has a debt-equity ratio of .86. Return on assets is 10.0 percent, and total equity is $795,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations.)
- Problem 3-15 Ratios and Fixed Assets The Mikado Company has a ratio of long-term debt to long-term debt plus equity of .26 and a current ratio of 1.1. Current liabilities are $820, sales are $6,240, profit margin is 8.5 percent, and ROE is 18.7 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Problem 3-17 Asset Management and Profitability Ratios (LG3-2, LG3-4) You have the following information on Els’ Putters, Inc.: sales to working capital is 5.6 times, profit margin is 25 percent, net income available to common stockholders is $8.75 million, and current liabilities are $7.0 million. What is the firm’s balance of current assets? (Enter your answer in millions of dollars rounded to 2 decimal places.)Problem 3-2 Calculating Profitability Ratios [LO2] DTO, Inc., has sales of $20 million, total assets of $18.2 million, and total debt of $9.1 million. Assume the profit margin is 9 percent. a. What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
