Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue. Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets. Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets. Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity. Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business. Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS. 1. To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

Question

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Answer 1

Question

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

To determine

7.

To Analyze: M Company’s operating performance during 2019.

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Answer 2

Question

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

To determine

7.

To Analyze: M Company’s operating performance during 2019.

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Answer 3

Question

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

To determine

7.

To Analyze: M Company’s operating performance during 2019.

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Answer 4

Question

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

To determine

7.

To Analyze: M Company’s operating performance during 2019.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

To determine

7.

To Analyze: M Company’s operating performance during 2019.

Answer 6

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

Answer 7

Chapter 17, Problem E17.20E

To determine

Profit Margin Ratio: Profit margin ratio reflects the portion of net earnings in the net sales. It is a profitability measure tool that is used to evaluate the net income a business earns on every dollar of net sales. It is computed as net income divided by net revenue.

Rate of Return on Total Assets: It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s rate of return on total assets reflects its ability to optimize the use of total assets.

Asset Turnover Ratio: It is the extended form of rate of return on total assets. Rate of return on total assets measures the profit generated but asset turnover measures the sales generated but from the use of total assets.

Return on Common Stockholder’s Equity: It measures the achievement of Company in generating profits for common stockholders. It is calculated by dividing Net Income excluding Preferred Dividends with Average Common Stockholder’s Equity.

Earnings per Share (EPS): It is a mandatory term to be reported with the financials of a corporation in the annual report. It reflects the amount earned or lost on every outstanding common equity share. It is widely used to evaluate the performance of a business.

Dividend Payout: After the calculation of earnings per share, companies declare the amount to be paid to common shareholders out of those earnings. This segment of earnings per share declared to be paid as dividends is measure by dividend payout ratio. It is reflected as in percentage of EPS.

1.

To Calculate: The profit margin ratio for 2018 and 2019 for M Company.

Answer 8

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

Answer 9

To determine

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

Answer 10

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

Answer 11

To determine

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

Answer 12

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

Answer 13

To determine

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

Answer 14

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

Answer 15

To determine

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

Answer 16

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

Answer 17

To determine

6.

To Calculate: Dividend payout for 2019 for M Company.

Answer 18

To determine

7.

To Analyze: M Company’s operating performance during 2019.

Answer 19

To determine

7.

To Analyze: M Company’s operating performance during 2019.

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

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Answer 23

Ch. 17 - Prob. 1QC Ch. 17 - Prob. 2QC Ch. 17 - Prob. 3QC Ch. 17 - Prob. 4QC Ch. 17 - Prob. 5QC Ch. 17 - Prob. 6QC Ch. 17 - Prob. 7QC Ch. 17 - Prob. 8QC Ch. 17 - Prob. 9QC Ch. 17 - Prob. 10QC

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2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

6.

To Calculate: Dividend payout for 2019 for M Company.

7.

To Analyze: M Company’s operating performance during 2019.

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Chapter 17 Solutions

Videos

2. To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

3. To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

4. To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

5. To Calculate: The earnings per share for 2018 and 2018 for company M.

6. To Calculate: Dividend payout for 2019 for M Company.

7. To Analyze: M Company’s operating performance during 2019.

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Chapter 17 Solutions

2.

To Calculate: The rate of return on total assets for 2018 and 2019 for M Company.

3.

To Calculate: The asset turnover ratio for 2018 and 2019 for company M.

4.

To Calculate: The rate of return on common stockholders’ equity for 2018 and 2019 for company M.

5.

To Calculate: The earnings per share for 2018 and 2018 for company M.

6.

To Calculate: Dividend payout for 2019 for M Company.

7.

To Analyze: M Company’s operating performance during 2019.