Business
AccountingCornerstones of Financial AccountingProfitability Ratios Tinker Corporation operates in the highly competitive consulting industry. Tinker’s balance sheet indicates the following balances as of December 31, 2019. Required: Calculate Tinker’s return on equity if Tinker’s 2019 net income is $90,000.
Profitability Ratios Tinker Corporation operates in the highly competitive consulting industry. Tinker’s balance sheet indicates the following balances as of December 31, 2019. Required: Calculate Tinker’s return on equity if Tinker’s 2019 net income is $90,000.
BuyFindarrow_forward
Cornerstones of Financial Accounti...
4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFindarrow_forward
Cornerstones of Financial Accounti...
4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
Solutions
Chapter
Section
Chapter 12, Problem 65BE
Textbook Problem
Profitability Ratios
Tinker Corporation operates in the highly competitive consulting industry. Tinker’s balance sheet indicates the following balances as of December 31, 2019.
Required:
Calculate Tinker’s return on equity if Tinker’s 2019 net income is $90,000.
check_circle
Expert Solution
Chapter 12 Solutions
Cornerstones of Financial Accounting
Show all chapter solutions
addCh. 12 - Describe how some of the primary groups of users...Ch. 12 - What is a 10-K?Ch. 12 - How does the 10-K differ from the 1O-Q?Ch. 12 - Describe the information provided in Item 1 of the...Ch. 12 - 5. Describe the information provided in Item 7 of...Ch. 12 - 6. Describe the information provided in Item 8 of...Ch. 12 - What is the difference between time series and...Ch. 12 - 8. What is the difference between horizontal and...Ch. 12 - 9. How do the current and quick ratios differ?...Ch. 12 - How does the operating cash flow ratio differ from...
Ch. 12 - What are you trying to learn by calculating debt...Ch. 12 - 12. Why are higher asset turnover ratios...Ch. 12 - What two aspects of a companys profitability are...Ch. 12 - What are the two major categories of stockholder...Ch. 12 - A Dupont analysis breaks down return on equity...Ch. 12 - Why must you analyze the accounting policies of a...Ch. 12 - Which of the following use financial statement...Ch. 12 - Which statement would best provide information...Ch. 12 - A banker is analyzing a company that operates in...Ch. 12 - Which of the following filings includes unaudited...Ch. 12 - Which of the following filings is known as the...Ch. 12 - Which section of the Form 10-K includes an...Ch. 12 - Which of the following are required to be included...Ch. 12 - Which type of analysis compares a single...Ch. 12 - Which of the following types of analysis compares...Ch. 12 - Which of the following types of analysis is...Ch. 12 - Vertical analysis expresses each financial...Ch. 12 - Horizontal analysis expresses each financial...Ch. 12 - How is the current ratio calculated? a. Cash Flows...Ch. 12 - Partial information from Fabray Companys balance...Ch. 12 - Hummel Inc. has $30,000 in current assets and...Ch. 12 - How is the cash ratio calculated? a. (Cash +...Ch. 12 - A firms quick ratio is typically computed as: a....Ch. 12 - Schuester Company has $40,000 in current...Ch. 12 - What ratio is used to measure a firms liquidity?...Ch. 12 - Which of the following transactions could increase...Ch. 12 - Total Liabilities Total Equity equals: a....Ch. 12 - Which of the following ratios is not a debt...Ch. 12 - The balance sheet for Sylvester Inc. at the end of...Ch. 12 - When analyzing a companys debt to equity ratio,...Ch. 12 - Cost of goods sold divided by average inventory is...Ch. 12 - A fIrms asset turnover ratio is typically computed...Ch. 12 - Which of the following ratios is used to measure a...Ch. 12 - Which of the following ratios is used to measure a...Ch. 12 - Pillsbury Corporation has $65,000 of cost of goods...Ch. 12 - If Abrams Company has an inventory turnover of 7.3...Ch. 12 - Which of the following ratios is used to measure...Ch. 12 - Which of the following is the formula to compute...Ch. 12 - Selected information for Berry Company is as...Ch. 12 - Which of the following ratios is used to measure a...Ch. 12 - Why might an industry group have higher 5-year...Ch. 12 - The dividend yield ratio measures the: a. income...Ch. 12 - Corporations are required to disclose earnings per...Ch. 12 - Hudson Company has preferred dividends of $1...Ch. 12 - Which of the following are not part of common...Ch. 12 - 12-40 A Dupont analysis recognizes that return on...Ch. 12 - If a company has a higher net profit margin than...Ch. 12 - Which of the following ratios is decomposed using...Ch. 12 - Which of the following is not included in the...Ch. 12 - When a Dupont analysis reveals that a company has...Ch. 12 - Which of the following questions would be...Ch. 12 - Cross Sectional Analysis Cross sectional analysis...Ch. 12 - Time Series Analysis Time series analysis involves...Ch. 12 - Horizontal and Vertical Analysis Selected data...Ch. 12 - Short-Term Liquidity Ratios Three ratios...Ch. 12 - Debt Management Ratios Selected data from the...Ch. 12 - Debt Management and Short-Term Liquidity Ratios...Ch. 12 - Asset Efficiency Ratios Selected financial...Ch. 12 - Profitability Ratios The following data came from...Ch. 12 - Profitability Ratios Tanaka Corporations balance...Ch. 12 - Profitability Ratios The following data came from...Ch. 12 - Stockholder Ratios The following data came from...Ch. 12 - Cross Sectional Analysis Cross sectional analysis...Ch. 12 - Time Series Analysis Time series analysis involves...Ch. 12 - Horizontal and Vertical Analysis Venus Clothing...Ch. 12 - Short-Term Liquidity Ratios Larry, Curly, and Moe...Ch. 12 - Debt Management Ratios Glow Corporation provides...Ch. 12 - Debt Management and Short-Term Liquidity Ratios...Ch. 12 - Asset Efficiency Ratios Rumsford Inc.s financial...Ch. 12 - Profitability Ratios Meade Publications is a...Ch. 12 - Profitability Ratios Tinker Corporation operates...Ch. 12 - Profitability Ratios Katrina Corp. is a publicly...Ch. 12 - Stockholder Ratios Orion Corp.s financial data for...Ch. 12 - Exercise 12-68 Sec Filings The SEC requires...Ch. 12 - Exercise 12-69 Form 1 0-K Form 10-K has many...Ch. 12 - Getting Familiar with the Format of the 1 0-K Look...Ch. 12 - Financial Statement Users Many groups analyze...Ch. 12 - Horizontal Analysis of Income Statements...Ch. 12 - Vertical Analysis of Balance Sheets Consolidated...Ch. 12 - Horizontal Analysis Using Income Statements The...Ch. 12 - Horizontal Analysis Using Balance Sheets The...Ch. 12 - Preparation of Common Size Statements for Vertical...Ch. 12 - Common Size Statements for Vertical Analysis The...Ch. 12 - Short-Term Liquidity Ratios The financial...Ch. 12 - Debt Management Ratios Refer to Steels financial...Ch. 12 - Asset Efficiency Ratios Refer to financial...Ch. 12 - Profitability Ratios Refer to Steeles finanancial...Ch. 12 - Stockholder Ratios Refer to Steeles financial...Ch. 12 - Dupont Analysis Refer to Steeles financial...Ch. 12 - A Using Common Size Data for Credit Analysis You...Ch. 12 - Using Common Size Data for Investment Analysis...Ch. 12 - Using Common Size Income Statement Data OBJECTIVE...Ch. 12 - A Using Common Size Statements The following...Ch. 12 - Using Common Size Statements Twisted Company owns...Ch. 12 - Preparing Common Size Statements The financial...Ch. 12 - A Preparation of Ratios Refer to the financial...Ch. 12 - A Comparing Financial Ratios Presented below are...Ch. 12 - A Preparation of Ratios Refer to the financial...Ch. 12 - Accounting Alternatives and Financial Analysis...Ch. 12 - Using Common Size Data for Credit Analysis You are...Ch. 12 - Using Common Size Data for Investment Analysis...Ch. 12 - Using Common Size Income Statement Data The 2019....Ch. 12 - Using Common Size Statements The following income...Ch. 12 - Using Common Size Statements Austin Logo lnc. owns...Ch. 12 - Preparing Common Size Statements The financial...Ch. 12 - Preparation of Ratios Refer to the financial...Ch. 12 - Comparing Financial Ratios Presented below are...Ch. 12 - Preparation of Ratios Refer to the financial...Ch. 12 - Problem 1 2-93B Accounting Alternatives and...Ch. 12 - Ethics and Equity Kelsey Calhoun is employed as a...Ch. 12 - Assessing the Effects of the Clean Air Legislation...Ch. 12 - Assessing the Effects of the Clean Air Legislation...Ch. 12 - Changes in the Price of Fuel for Aircraft The cost...Ch. 12 - Changes in the Price of Fuel for Aircraft The cost...Ch. 12 - Consolidated financial statements for Initech...Ch. 12 - Analyzing Growth Consolidated financial statements...Ch. 12 - Analyzing Growth Consolidated financial statements...Ch. 12 - Analyzing Growth Consolidated financial statements...Ch. 12 - Analyzing Growth Consolidated financial statements...Ch. 12 - Analyzing Growth Consolidated financial statements...Ch. 12 - Identifying the Causes of Profitability Changes...Ch. 12 - Identifying the Causes of Profitability Changes...Ch. 12 - Identifying the Causes of Profitability Changes...Ch. 12 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...Ch. 12 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...Ch. 12 - Using Common Size Income Statement Data The 2019....Ch. 12 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...Ch. 12 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Show solutions addCost flow methods The following three identical units of Item P401C are purchased during April: Item Beta Uni...
Financial & Managerial Accounting
LIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a thr...
Corporate Financial Accounting
Why is the information system important to the organization?
Accounting Information Systems
Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happen...
Brief Principles of Macroeconomics (MindTap Course List)
You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is ...
Principles of Economics (MindTap Course List)
Show that for any three events A, B, and C with P(C) 0, P(A B|C) = P(A|C) + P(B|C) P(A B|C).
Probability and Statistics for Engineering and the Sciences
Suppose that this years money supply is 500 billion, nominal GDP is 10 trillion, and real GDP is 5 trillion. a....
Principles of Macroeconomics (MindTap Course List)
Why might it be rational for a small firm that does not have access to the capital markets to use the payback m...
Fundamentals of Financial Management (MindTap Course List)
Why should policymakers think about incentives?
Principles of Microeconomics (MindTap Course List)
A manager of a large corporation recommends a 10,000 raise be given to keep a valued subordinate from moving to...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
How do managers use it in order to decide the pay structure of employees?
Foundations of Business (MindTap Course List)
(Corporations) How did the institution of the firm get a boost from the advent of the Industrial Revolution? Wh...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of 200,000, a net income of 15,000, and the following bal...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
EXPECTATIONS THEORY Assume that the real risk-free rate is 2% and that the maturity risk premium is zero. If a ...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
What arguments could you give for or against the idea that body language iSa science with principles that can b...
Essentials of Business Communication (MindTap Course List)
Identifying accounts to be closed From the list that follows, identify the accounts that should be closed at th...
Financial And Managerial Accounting
What is game theory? Identify two applications of game theory.
Principles of Information Systems (MindTap Course List)
Identify and briefly describe at least four key business capabilities provided by the use of a CRM system.
Fundamentals of Information Systems
List the last name of each customer that has a reservation for a trip in Massachusetts (MA).
A Guide to SQL
Describe how the various types of firewalls interact with network traffic at various levels of the OSI model.
Principles of Information Security (MindTap Course List)
What is a genetic algorithm’ Give an example of the use of a genetic algorithm.
Fundamentals of Information Systems
What does the term 3 Vs refer to?
Database Systems: Design, Implementation, & Management
What is logical independence?
Database Systems: Design, Implementation, & Management
Why is an intercooler used on turbocharged and supercharged engines?
Automotive Technology: A Systems Approach (MindTap Course List)
A ho 1 low st e el shaft ACB of outside diameter 50 mm and inside diameter 40 mm is held against rotation at en...
Mechanics of Materials (MindTap Course List)
The combination of the machining operations required to produce a part is called a manufacturing ______________...
Precision Machining Technology (MindTap Course List)
In a hydrometer test, the results are as follows: Gs = 2.60, temperature of water = 24, and hydrometer reading ...
Fundamentals of Geotechnical Engineering (MindTap Course List)
Describe three exciting new applications that are becoming feasible as a result of the growth of the Internet o...
Principles of Information Systems (MindTap Course List)
A copper plate, with dimensions of 3 cm 3 cm 5 cm (length, width, and thickness, respectively), is exposed to...
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Research the Internet magazines, or textbooks to find examples of visual aids, including a bar chart, pie chart...
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Should the CISO (Iris) be assessing HR policies? Why or why not?
Management Of Information Security
Identify the terminal markings for the delta-wound motor shown in Figure 519. FIG. 519
Electric Motor Control
Use the data in the steam tables to answer the following: A. Find the change in volume when 50 kg of steam, ini...
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Refer to Problem 2.C.1. Results of the sieve analysis for Soils A, B, and C are given below. To obtain a more r...
Principles of Geotechnical Engineering (MindTap Course List)
Suppose you are the engineer employed by a small community, and the town council tells you to design a recyclin...
Solid Waste Engineering
When does the lower heating element operate? _________________ _________________________
EBK ELECTRICAL WIRING RESIDENTIAL
Determine the three forces acting on the plate that are equivalent to the force R - 210k kN.
International Edition---engineering Mechanics: Statics, 4th Edition
Three major types of rubber seals are used in automatic transmissions: the ____ , the ____ , and the seal.
Automotive Technology
The beam shown in Figure P5.15-3 is a W2168 of A992 steel and has lateral support only at the ends. Check ii fo...
Steel Design (Activate Learning with these NEW titles from Engineering!)
Identify what is stored in a record. Explain the importance of a primary key.
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Which email protocol allows an email client to download email messages to the local computer? a. IMAP4 b. SMTP ...
Network+ Guide to Networks (MindTap Course List)
Determine the equations for shear and bending moment for the beam shown. Use the resulting equations to draw th...
Structural Analysis
What is the purpose of the Income Summary account? How does it relate to the revenue and expense accounts?
College Accounting (Book Only): A Career Approach
Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States and Canada a...
Managerial Accounting
Pareto chart Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis ...
Financial & Managerial Accounting
When should the liability associated with a product warranty be recorded? Discuss.
Financial Accounting
Temporary and Permanent Differences In the current year, you are calculating a diversified companys deferred ta...
Intermediate Accounting: Reporting And Analysis
What are the six broad classes of physical control activities defined by COSO?
Accounting Information Systems
Payroll internal control procedures Big Howies Hot Dog Stand is a fast-food restaurant specializing in hot dogs...
Financial Accounting
When and how does an employer pay the FUTA taxes?
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Bienestar, Inc., has two plants that manufacture a line of wheelchairs. One is located in Kansas City, and the ...
Cornerstones of Cost Management (Cornerstones Series)
CALCULATION OF COST OF GOODS SOLD: PERIODIC INVENTORY SYSTEM Prepare the cost of goods sold section for Adams G...
College Accounting, Chapters 1-27
Internal rate of return method for a service company The Canyons Resort, a Utah ski resort, recently announced ...
Accounting (Text Only)
Contingent liabilities Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one...
Corporate Financial Accounting
Classify the following accounts as real (permanent) or nominal (temporary) and indicate with an X whether the a...
College Accounting (Book Only): A Career Approach
Performance Report for Variable Variances Potter Company provided the following information: Required: Prepare ...
Managerial Accounting: The Cornerstone of Business Decision-Making
Assume that Esquire Consulting erroneously recorded the payment of $30,000 of dividends as salary expense. (a) ...
Survey of Accounting (Accounting I)
Total earnings for the employees of Garys Grill for the week ended January 14, 20--, were 6,400. The following ...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Does a competitive firms price equal its marginal cost in the short run, in the long run, or both? Explain.
Principles of Microeconomics
The following is a brief description of the financial statement assertions from PCAOB Auditing Standards Sectio...
Pkg Acc Infor Systems MS VISIO CD
Suppose the president of a college argues that a 25 percent tuition increase will raise revenues for the colleg...
Economics For Today
Explain the criteria for stating good marketing objectives
MKTG 12:STUDENT ED.-TEXT
If an investment adviser gives you some hot new stock tip, is it likely to be a “sure thing”? Why or why not? I...
Economics: Private and Public Choice (MindTap Course List)
How would the following events be using a production possibilities curve for housing and food? a. The economy i...
Exploring Economics
What is happening to the U.S. real exchange rate in each of the following situations? Explain. a. The U.S. nomi...
Principles of Macroeconomics (MindTap Course List)
Rate each of the following questions according to the following scale: 1. I am never like this. 2. I am rarely ...
Understanding Management (MindTap Course List)
Assume the aggregate demand and aggregate supply curves intersect at a price level of 100. Explain the effect o...
MACROECONOMICS FOR TODAY
Do you feel learning is different in professional services firms versus manufacturing organizations? Explain wh...
Purchasing and Supply Chain Management
What would the supply curve for houses (in a given city) look like for a period of (a) the next 10 hours and (b...
Microeconomics
Economists often say, There is no such thing as a free lunch. How is this saying related to patients moving fro...
Economics (MindTap Course List)
Given a component of retail strategy, summarize the key strategic considerations for that component.
Contemporary Marketing
Which of the following statements is true? a. Derived demand for labor depends on the demand for the product la...
Micro Economics For Today
Indicate five of the worlds economies that are most free. How do the income levels and growth rates of freer ec...
Macroeconomics: Private and Public Choice (MindTap Course List)
EQUIVALENT ANNUAL ANNUITY A firm has two mutually exclusive investment projects to evaluate; both can be repeat...
Fundamentals of Financial Management (MindTap Course List)
Under what conditions is the production possibilities frontier linear rather than bowed out?
Essentials of Economics (MindTap Course List)
DeMarco's Department Store manager Lauren Brewster's " Wow" moment came when she observed a Chicago restaurant ...
Management, Loose-Leaf Version
If Jones trades a used car to Smith for 5,000, nothing new is created. Thus, there is no way the transaction ca...
Microeconomics: Private and Public Choice (MindTap Course List)
You are thinking of opening a small copy shop. It costs 5000 to rent a copier for a year, and it costs 0.03 per...
Practical Management Science
Why do U.S. corporations build manufacturing plants abroad when they can build them at home?
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
