All Related Questions of Return On Total Assets

Q: Astro Languet established Languet Products Co. as a sole proprietorship on

Astro Languet established Languet Products Co. as a sole proprietorship on January 5, 2014. At the company's year end of December 31, 2014, the accounts had the following balances (in thousands): A c...

Q: Linda Monkland established Monkland Ltd. in mid-2013 as the

Linda Monkland established Monkland Ltd. in mid-2013 as the sole shareholder. The accounts on June 30, 2014, the company's year end, just prior to preparing the required adjusting entries, were as fol...

Q: Ralph Lauren Corporation sells apparel through company-owned retail stores.

Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands): Assume that the apparel industry average return on t...

Q: a. How does the return on total assets differ from the

a. How does the return on total assets differ from the return on stockholders’ equity? b. Which ratio is normally higher? Why?

Q: Refer to the RadioShack Corporation Consolidated Financial Statements in Appendix B at

Refer to the RadioShack Corporation Consolidated Financial Statements in Appendix B at the end of this book. This case leads you through an analysis of the activity in Radioshack’s long-term assets, a...

Q: Give the DuPont model formula for computing (a) Rate

Give the DuPont model formula for computing (a) Rate of return on total assets (ROA) and (b) Rate of return on common stockholders’ equity (ROE). Then answer these questions about the rate-of-return c...

Q: In 2002, Enron Corporation fi led for Chapter 11 bankruptcy protection

In 2002, Enron Corporation fi led for Chapter 11 bankruptcy protection, shocking the business community: How could a company this large and this successful go bankrupt? This case explores the causes a...

Q: The following accounts and related balances of Bluebird Designers, Inc.,

The following accounts and related balances of Bluebird Designers, Inc., as of December 31, 2012, are arranged in no particular order. Requirements 1. Prepare Bluebird’s classified...

Q: The following accounts and related balances of Dove Designers, Inc.,

The following accounts and related balances of Dove Designers, Inc., as of December 31, 2012, are arranged in no particular order. Requirements 1. Prepare Dove’s classified balance...

Q: As a team, select an industry to analyze. Reuters provides

As a team, select an industry to analyze. Reuters provides lists of industries under Sectors and Industries at www.reuters.com . (Click on an industry and then select Company Rankings for a list of me...

Q: Use KTM’s financial statements in Appendix A to compute its return on

Use KTM’s financial statements in Appendix A to compute its return on total assets for fiscal yearended December 31, 2011.

Q: Roak Company and Clay Company are similar firms that operate in the

Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations in 2013 and Roak in 2010. In 2015, both companies pay 7% interest on their debt to creditors. T...

Q: As Beacon Company controller, you are responsible for informing the board

As Beacon Company controller, you are responsible for informing the board of directorsabout its financial activities. At the board meeting, you present the following information. After the meeting,...

Q: Access the February 17, 2012, filing of the December 31

Access the February 17, 2012, filing of the December 31, 2011, 10-K report of The HersheyCompany (ticker HSY) at www.sec.gov and complete the following requirements. RequiredCompute or identify the...

Q: Assume that David and Tom Gardner of The Motley Fool (Fool

Assume that David and Tom Gardner of The Motley Fool (Fool.com) have impressed yousince you first heard of their rather improbable rise to prominence in financial circles. You learn of a staff opening...

Q: Why would a company’s return on total assets be different from its

Why would a company’s return on total assets be different from its return on common stockholders’ equity?

Q: Montane Exploration Company reported these figures for 2018 and 2017:

Montane Exploration Company reported these figures for 2018 and 2017: Compute the rate of return on total assets for 2018. (Round to two decimals.)

Q: Details about a company’s investments appear in a number of places in

Details about a company’s investments appear in a number of places in the annual report. Use Target Corporation’s Fiscal 2015 annual report to answer the following questions. Visit http://www.pearsonh...

Q: What does the rate of return on total assets measure, and

What does the rate of return on total assets measure, and how is it calculated?

Q: Barot’s 2018 financial statements reported the following items—with 2017 figures

Barot’s 2018 financial statements reported the following items—with 2017 figures given for comparison: Net income for 2018 was $3,910, and interest expense was $2...

Q: Accel’s Companies, a home improvement store chain, reported the following

Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Requireme...

Q: Micatin, Inc.’s comparative income statement follows. The 2017

Micatin, Inc.’s comparative income statement follows. The 2017 data are given as needed. Requirements: 1. Calculate the profit margin ratio for 2019 and 2018. 2. Calculate the rate...

Q: In its annual report, ABC Athletic Supply, Inc. includes

In its annual report, ABC Athletic Supply, Inc. includes the following five-year financial summary: Requirements: Analyze the company’s financial summary for the fiscal years 2014&...

Q: In its annual report, XYZ Athletic Supply, Inc. includes

In its annual report, XYZ Athletic Supply, Inc. includes the following five-year financial summary: Requirements: Analyze the company’s financial summary for the fiscal years 2014&...

Q: Arbor Corporation’s financial statements for 2011 showed the following:

Arbor Corporation’s financial statements for 2011 showed the following: Income Statement Revenues .................................................................$300,000 Expenses...

Q: Define each of the following terms: a. Liquidity ratios:

Define each of the following terms: a. Liquidity ratios: current ratio; quick, or acid test, ratio b. Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turn...

Q: a. How does the return on total assets differ from the

a. How does the return on total assets differ from the return on stockholders’ equity? b. Which ratio is normally higher? Why?

Q: Paul Ward is interested in the stock of Pecunious Products, Inc

Paul Ward is interested in the stock of Pecunious Products, Inc. Before purchasing the stock, Mr. Ward would like your help in analyzing the data that are available to him as follows: Mr. Ward would...

Q: The Salza Technology Corporation successfully increased its “top line” sales

The Salza Technology Corporation successfully increased its “top line” sales from $375,000 in 2015 to $450,000 in 2016. Net income also increased as did the venture’s total assets. You have been ask...

Q: Robbins Company is a wholesale distributor of professional equipment and supplies.

Robbins Company is a wholesale distributor of professional equipment and supplies. The company’s sales have averaged about $900,000 annually for the 3-year period 2011â€&#...

Q: Eleanor’s Computers is a retailer of computer products. Using the financial

Eleanor’s Computers is a retailer of computer products. Using the financial data provided, complete the financial ratio calculations for 2016. Advise management of any ratios that in...

Q: Macy’s, Inc. (M), sells merchandise through company-

Macy’s, Inc. (M), sells merchandise through company-owned retail stores and Internet website. Recent financial information for Macy’s is provided bel...

Q: a. How does the return on total assets differ from the

a. How does the return on total assets differ from the return on stockholders’ equity? b. Which return is normally higher? Explain.

Q: Critelli Company has provided the following comparative information: /

Critelli Company has provided the following comparative information: You have been asked to evaluate the historical performance of the company over the last five years. Selected indus...

Q: Utilizing the comprehensive annual financial report (CAFR) obtained for Exercise

Utilizing the comprehensive annual financial report (CAFR) obtained for Exercise 1–16, follow these instructions: a Internal Service Funds. (1) Use of Funds. What activities of the government are repo...

Q: Markus Company’s common stock sold for $2.75 per share

Markus Company’s common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following...

Q: Return on total assets can be separated into two important components.

Return on total assets can be separated into two important components. 1. Write the formula to separate the return on total assets into its two basic components. 2. Explain how these components of the...

Q: The return on total assets is the focus of analysts, creditors

The return on total assets is the focus of analysts, creditors, and other users of financial statements. 1. How is the return on total assets computed? 2. What does this important ratio reflect?

Q: Refer to Apple’s financial statements in Appendix A to answer the following

Refer to Apple’s financial statements in Appendix A to answer the following. 1. Are its financial statements consolidated? How can you tell? 2. What is the amount of comprehensive income for the year...

Q: Key figures for Apple and Google follow. /

Key figures for Apple and Google follow. Required 1. Compute return on total assets for Apple and Google for the two most recent years. 2. Separate the return on total assets computed in part 1 into...

Q: As Beacon Company controller, you are responsible for informing the board

As Beacon Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following information. After the meeting,...

Q: Access the February 21, 2014, filing of the December 31

Access the February 21, 2014, filing of the December 31, 2013, 10-K report of The Hershey Company (ticker HSY) at www.SEC.gov and complete the following requirements. Required Compute or identify the...

Q: Assume that David and Tom Gardner of The Motley Fool (Fool

Assume that David and Tom Gardner of The Motley Fool (Fool.com) have impressed you since you first heard of their rather improbable rise to prominence in financial circles. You learn of a staff openin...

Q: Use Samsung’s financial statements in Appendix A to compute its return on

Use Samsung’s financial statements in Appendix A to compute its return on total assets for fiscal year ended December 31, 2013. Samsung’s Financial Statements from...

Q: Roak Company and Clay Company are similar firms that operate in the

Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations in 2013 and Roak in 2010. In 2015, both companies pay 7% interest on their debt to creditors. T...

Q: The following information is available from the financial statements of Regae Industries

The following information is available from the financial statements of Regae Industries. Compute Regae’s return on total assets for 2015 and 2016. (Round returns to one-tenth of a p...

Q: Give the formula for computing (a) rate of return

Give the formula for computing (a) rate of return on total assets (ROA) and (b) rate of return on common stockholders’ equity (ROE). Then answer these questions about the rate-of-return computations...

Q: The following accounts and related balances of Hawk Designers, Inc.,

The following accounts and related balances of Hawk Designers, Inc., as of December 31, 2010, are arranged in no particular order. Requirements 1. Prepare Hawks classified balance sheet in the accou...

Q: The following accounts and related balances of Seagull Designers, Inc.,

The following accounts and related balances of Seagull Designers, Inc., as of December 31, 2010, are arranged in no particular order. Requirements 1. Prepare Seagulls classified balance sheet in the...

Q: Ralph Lauren Corporation (RL) sells apparel through company-owned

Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Assume the apparel industry average return on total as...

Q: Refer to the Under Armour, Inc., Consolidated Financial Statements in

Refer to the Under Armour, Inc., Consolidated Financial Statements in Appendix B and online in the filings section of http://www.sec.gov. This case leads you through an analysis of the activity for so...

Q: In 2002, Enron Corporation filed for Chapter 11 bankruptcy protection,

In 2002, Enron Corporation filed for Chapter 11 bankruptcy protection, shocking the business community: How could a company this large and this successful go bankrupt? This case explore...

Q: The following accounts and related balances of Seagull Designers, Inc.,

The following accounts and related balances of Seagull Designers, Inc., as of December 31, 2016, are arranged in no particular order: Requirements 1. Prepare Seagull’s classified...

Q: The following accounts and related balances of Ginger Designers, Inc.,

The following accounts and related balances of Ginger Designers, Inc., as of December 31, 2016, are arranged in no particular order: Requirements 1. Prepare Ginger’s classified ba...

Q: Give the DuPont model formula for computing a. rate of

Give the DuPont model formula for computing a. rate of return on total assets (ROA) and b. rate of return on common stockholders’ equity (ROE). Then answer these questions about the rate-of-return c...

Q: Use the financial statements of Gagnon, Inc., in S13-

Use the financial statements of Gagnon, Inc., in S13-6 and S13-7 to compute these profitability measures for 2016. Show each computation. a. Rate of return on sales b....

Q: Baker Oats had an asset turnover of 1.6 times per

Baker Oats had an asset turnover of 1.6 times per year. a. If the return on total assets (investment) was 11.2 percent, what was Baker’s profit margin? b. The following year, on the same level of asse...

Q: The Farmers State Bank recently has been earning an “above average

The Farmers State Bank recently has been earning an “above average” (compared to the overall banking industry) return on total assets of 1.50 percent. The bank’s return on common equity is only 12 per...

Q: Wilson Electric Company, a manufacturer of various types of electrical equipment

Wilson Electric Company, a manufacturer of various types of electrical equipment, is examining its working capital investment policy for next year. Projected fixed assets and current liabilities are $...

Q: Use the accompanying financial statements for Fox Manufacturing Company for the year

Use the accompanying financial statements for Fox Manufacturing Company for the year ended December 31, 2019, along with the industry average ratios below, to do the following: a. Prepare and interpre...

Q: The financial statements of Zach Industries for the year ended December 31

The financial statements of Zach Industries for the year ended December 31, 2019, follow. a. Use the preceding financial statements to complete the following table. Assume that the industry average...

Q: Given the following financial statements, historical ratios, and industry averages

Given the following financial statements, historical ratios, and industry averages, calculate Sterling Company’s financial ratios for the most recent year. (Assume a 365-day year.)...

Q: Home Health Inc. has come to Jane Ross for a yearly

Home Health Inc. has come to Jane Ross for a yearly financial checkup. As a first step, Jane has prepared a complete set of ratios for fiscal years 2018 and 2019. She will use them to look for signifi...

Q: McDougal Printing Inc. had sales totaling $40,000,

McDougal Printing Inc. had sales totaling $40,000,000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement...

Q: Seven years ago, after 15 years in public accounting, Stanley

Seven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his position as manager of cost systems for Davis, Cohen, and O’Brien Public Accountants and start...

Q: Astro Languet established Languet Products Co. as a sole proprietorship on

Astro Languet established Languet Products Co. as a sole proprietorship on January 5, 2017. At the company’s year end of December 31, 2017, the accounts had the following balances (in thousands): Cur...

Q: Linda Monkland established Monkland Ltd. in mid-2016 as the

Linda Monkland established Monkland Ltd. in mid-2016 as the sole shareholder. The accounts on June 30, 2017, the company’s year end, just prior to preparing the required adjusting en...

Q: Selected financial data in thousands of dollars for the Hunter Corporation are

Selected financial data in thousands of dollars for the Hunter Corporation are listed in the text. a. Calculate Hunter’s rate of return on total assets in 2017 and in 2016. Did the ratio improve or wo...

Q: Access the annual financial statements, including the accompanying notes, of

Access the annual financial statements, including the accompanying notes, of Loblaw Companies Limited for its 52 weeks ended January 2, 2016. These can be found on SEDAR (www.sedar.com) or the company...

Q: Robbins Ltd. is a wholesale distributor of professional equipment and supplies

Robbins Ltd. is a wholesale distributor of professional equipment and supplies. The company’s sales have averaged about $900,000 annually for the three-year period 2015â€&...

Q: Falkon Corp. reported the following amounts in the shareholders’ equity section

Falkon Corp. reported the following amounts in the shareholders’ equity section of its December 31, 2016 statement of financial position: Preferred shares, $8 dividend (10,000 shares authorized, 2,00...

Q: Access the annual financial statements, including the accompanying notes, of

Access the annual financial statements, including the accompanying notes, of Loblaw Companies Limited for its 52 weeks ended December 30, 2017. These can be found on SEDAR (www.sedar.com) or the compa...

Q: Robbins Ltd. is a wholesale distributor of professional equipment and supplies

Robbins Ltd. is a wholesale distributor of professional equipment and supplies. The company's sales have averaged about $900,000 annually for the three-year period 2018 to 2020. The firm's total asset...

Q: Falkon Corp. reported the following amounts in the shareholders' equity section

Falkon Corp. reported the following amounts in the shareholders' equity section of its December 31, 2019 SFP: During 2020, the company had the following transactions that affect shareholders' equity....

Q: Ralph Lauren Corporation (RL) sells apparel through company-owned

Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Assume the apparel industry average return on total as...

Q: Following are data for BioBeans and GreenKale, which sell organic produce

Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. 1. Compute the profit margin and the return on total assets for both companies. 2. Based on analysis...

Q: Use Samsung’s financial statements in Appendix A to compute its return on

Use Samsung’s financial statements in Appendix A to compute its return on total assets for fiscal year ended December 31, 2018.

Q: Access the February 22, 2019, filing of the December 31

Access the February 22, 2019, filing of the December 31, 2018, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the fol...

Q: Fivio Co. reports the following information. (1) Compute

Fivio Co. reports the following information. (1) Compute return on total assets for the current year and for 1 year ago. (2) Is Fivio more efficient or less efficient in using total assets to produce...

Q: Following are financial data for Nike and Under Armour. (1

Following are financial data for Nike and Under Armour. (1) Compute return on total assets for the current year for (a) Nike and (b) Under Armour. (2) Compute both profit margin and total asset turnov...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s return on total assets for the years ended September 29, 2018, and Septem...

Q: Following are selected data from Samsung, Apple, and Google.

Following are selected data from Samsung, Apple, and Google. Required 1. Compute Samsung’s return on total assets for the two most recent years. 2. For the current year, is Samsung&a...

Q: Astro Languet established Languet Products Co. as a sole proprietorship on

Astro Languet established Languet Products Co. as a sole proprietorship on January 5, 2020. At the company's year end of December 31, 2020, the accounts had the following balances (in thousands): A...

Q: Linda Monkland established Monkland Ltd. in mid-2019 as the

Linda Monkland established Monkland Ltd. in mid-2019 as the sole shareholder. The accounts on June 30, 2020, the company's year end, just prior to preparing the required adjusting entries, were as fo...

Q: Ralph Lauren Corporation sells apparel through company-owned retail stores.

Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands): Assume that the apparel industry average return on to...

Q: The Salza Technology Corporation successfully increased its “top line” sales

The Salza Technology Corporation successfully increased its “top line” sales from $375,000 in 2018 to $450,000 in 2019. Net income also increased as did the venture...

Q: Why would a company’s return on total assets be different from its

Why would a company’s return on total assets be different from its return on common shareholders’ equity?

Q: You are the new human resources manager and are reviewing the bonus

You are the new human resources manager and are reviewing the bonus policies as part of familiarizing yourself with the payroll system. The plant superintendent’s bonus is calculated...

Q: The following information is available from the financial statements of Landscape Enhancements

The following information is available from the financial statements of Landscape Enhancements Inc.: Calculate Landscape Enhancements’ return on total assets for 2019 and 2020. (Roun...

Q: Calculate the return on total assets for 2020 and evaluate the result

Calculate the return on total assets for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

Q: The following accounts and related balances of Eagle Designers, Inc.,

The following accounts and related balances of Eagle Designers, Inc., as of December 31, 2018, are arranged in no particular order: Requirements: 1. Prepare Eagle’s classified bala...

Q: The following accounts and related balances of Cardinal Designers, Inc.,

The following accounts and related balances of Cardinal Designers, Inc., as of December 31, 2018, are arranged in no particular order: Requirements: 1. Prepare Cardinal’s classified...

Q: Key figures for Apple and Google follow / Required

Key figures for Apple and Google follow Required 1. Compute return on total assets for Apple and Google for the two most recent years. 2. Which of these two companies has the better return on total a...

Q: Following are selected data from Samsung, Apple, and Google.

Following are selected data from Samsung, Apple, and Google. Required 1. Compute Samsung’s return on total assets for the two most recent years. 2. for the current year, is Samsung&a...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s return on total assets for the years ended September 28, 2019, and September 29, 2018. 2. Is the change in Ap...

Q: We are evaluating whether or not to invest in a company.

We are evaluating whether or not to invest in a company. Indicate whether each of the following separate trends would make us more or less likely to invest. a. Return on equity is increasing, from 19%...

Q: A recent balance sheet of Sweet Tooth, Inc., included the

A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.) The company also reported total assets of $353,816 thousand, total l...

Q: In your web browser, search for the investor relations page of

In your web browser, search for the investor relations page of a public company you are interested in (e.g., Papa John’s investor relations). Select SEC Filings or Annual Report or Financials to obtai...

Q: Condensed financial statements for Alpha Corp. and Omega Corp. for

Condensed financial statements for Alpha Corp. and Omega Corp. for 2022 follow: INSTRUCTIONS 1. Compute the following ratios for each company (rounding to 2 decimal places when appropriate): a. Rate o...

Q: Below you will find the condensed financial statements for Koko Inc.

Below you will find the condensed financial statements for Koko Inc. and Suz Inc. for 2022. INSTRUCTIONS 1. Compute the following ratios for each company (please round to 2 decimal places for these ca...

Q: From the balance sheets and income statements of OS Distributors in Exhibits

From the balance sheets and income statements of OS Distributors in Exhibits 6.1, 6.2, and 6.3, compute the firm’s return on invested capital before tax (ROICBT) , return on capital employed before ta...