(1) Introduction: Profit margin ratio is calculated by dividing net income by the net sales. To calculate: Profit margin ratio.

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Answer 1

Question

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

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Use the following tables to answer the question: LOGIC COMPANY Income Statement For years ended December 31, 2016 and 2017 (values in $) 2016 2017 Gross sales 19,800 15,600 Sales returns and allowances 900 100 Net sales 18,900 15,500 COGS 11,800 8,800 Gross profit 7,100 6,700 Depreciation 780 640 Selling and administrative expenses 2,800 2,400 Research 630 540 Miscellaneous 440 340 Total operating expenses 4,650 3,920 Income before interest and taxes 2,450 2,780 Interest expense 640 540 Income before taxes 1,810 2,240 Provision for taxes 724 896 LOGIC COMPANY Balance Sheet For years ended December 31, 2016 and 2017 (values in $) 2016 2017 Current assets 12,300 9,400 Accounts receivable 16,900 12,900 Merchandise inventory 8,900 14,400 Prepaid expenses 24,400 10,400 Total current assets 62,500 47,100 Building (net) 14,900 11,400 Land 13,900 9,400 Total plant and equipment 28,800 20,800 Total assets 91,300 67,900 Accounts payable 13,400 7,400 Salaries payable 7,500 5,400 Total current…

Calculate each of following ratios for year 2017 using the financial statement in Table 1-3. Accounts receivable turnover Days sales outstanding (DSO) Accounts payable turnover Days payable outstanding (DPO) Total Asset turnover Fixed asset turnover Liquidity Ratio Current ratio Quick ratio Liability to assets Interest coverage ratio Profitability Ratios ROA ROE Gross profit margin Operating profit margin Net operating profit margin Table 1: Balance Sheet Statement for 2017 Cash $7,282 Short-Term invest. 20,000 Accounts Receivable 632,160 Inventories 1,287,360 Total Current Assets 1,946,802 Gross Property, Plant & Equipment 1,202,950 Less: Depreciation 263,160 Net Property, Plant & Equipment 939,790 Total assets $2,886,592 Accounts payable $324,000 Notes payable 720,000 Accruals 284,960 Total Current Liability 1,328,960 Long-term debt 1,000,000 Common stock 460,000 Retained earnings 97,632 Total equity 557,632 Total Liability & Equity $2,886,592 Table 2:…

Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).

Answer 2

Question

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Answer 6

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

Answer 7

Chapter 13, Problem 10E

To determine

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

Answer 8

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

Answer 9

To determine

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

Answer 10

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Answer 11

To determine

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 13 - Prob. 1MCQ Ch. 13 - Prob. 2MCQ Ch. 13 - Prob. 3MCQ Ch. 13 - Prob. 4MCQ Ch. 13 - Prob. 5MCQ Ch. 13 - Prob. 1DQ Ch. 13 - Prob. 2DQ Ch. 13 - Prob. 3DQ Ch. 13 - Prob. 4DQ Ch. 13 - Prob. 5DQ

(1) Introduction: Profit margin ratio is calculated by dividing net income by the net sales. To calculate: Profit margin ratio.

Solution Summary: The author explains that the company's profit margin ratio is declining due to high cost of goods or low selling price. The company needs to improve its asset turnover ratio.

Videos

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.

Want to see the full answer?

Chapter 13 Solutions

(1) Introduction: Profit margin ratio is calculated by dividing net income by the net sales. To calculate: Profit margin ratio.

Solution Summary: The author explains that the company's profit margin ratio is declining due to high cost of goods or low selling price. The company needs to improve its asset turnover ratio.

Videos

(1) Introduction: Profit margin ratio is calculated by dividing net income by the net sales. To calculate: Profit margin ratio.

(2) Introduction: Asset turnover ratio calculates the ability of a company to generate sales with the total assets. To calculate: Asset-turnover ratio.

(3) Introduction: Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets. To calculate: Return on total asset.

Want to see the full answer?

Chapter 13 Solutions

(1)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales.

To calculate:

Profit margin ratio.

(2)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the total assets.

To calculate:

Asset-turnover ratio.

(3)

Introduction:

Return on total asset is a ratio that calculated by dividing earnings before income tax by total assets.

To calculate:

Return on total asset.