All Related Questions of Total Asset Turnover

Q: Assuming the following ratios are constant, what is the sustainable growth

Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover 5 2.20 Profit margin 5 7.4% Equity multiplier 5 1.40 Payout ratio 5 40%

Q: If Jares, Inc., has an equity multiplier of 1.

If Jares, Inc., has an equity multiplier of 1.55, total asset turnover of 1.75, and a profit margin of 4.3 percent, what is its ROE?

Q: Canadian Tire Corporation, Limited is one of Canada's best-known

Canadian Tire Corporation, Limited is one of Canada's best-known retailers. Obtain a copy of Canadian Tire's financial statements for the year ended December 31, 2011, through SEDAR at www.sedar.com o...

Q: Consider a retail firm with a net profit margin of 3.

Consider a retail firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets of $44 million, and a book value of equity of $18 million. a. What is the firm’s current ROE? b. If...

Q: Leonatti Labs’ year-end price on its common stock is $

Leonatti Labs’ year-end price on its common stock is $15. The firm has a profit margin of 8 percent, total assets of $42 million, a total asset turnover ratio of 0.75, no preferred stock, and 3 millio...

Q: If Silas 4-Wheeler, Inc. has an ROE of

If Silas 4-Wheeler, Inc. has an ROE of 18 percent, equity multiplier of 2, and a profit margin of 18.75 percent, what is the total asset turnover and the capital intensity?

Q: Dogs R Us reported a profit margin of 10.5 percent

Dogs R Us reported a profit margin of 10.5 percent, total asset turnover of 0.75 times, debt-to-equity of 0.80 times, net income of $500,000, and dividends paid to common stockholders of $200,000. The...

Q: A linear probability model you have developed finds there are two factors

A linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the equity multiplier and the total asset turnover ratio. Based on past ban...

Q: A linear probability model you have developed finds there are two factors

A linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the equity multiplier and the total asset turnover ratio. Based on past ban...

Q: Massa Company, which has been operating for three years, provides

Massa Company, which has been operating for three years, provides marketing consulting services worldwide for dot-com companies. You are a financial analyst assigned to report on the Massa management...

Q: You are evaluating your current portfolio of investments to determine those that

You are evaluating your current portfolio of investments to determine those that are not performing to your expectations. You have all of the companies’ most recent annual reports. Required: For ea...

Q: Refer to the financial statements of American Eagle Outfitters (Appendix B

Refer to the financial statements of American Eagle Outfitters (Appendix B) and Urban Outfitters (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Required: 1. Compute...

Q: The following data are from annual reports of Jen’s Jewelry Company:

The following data are from annual reports of Jen’s Jewelry Company: Compute Jen’s total asset turnover ratio for 2012 and 2011. What do these results suggest to...

Q: You have observed that the total asset turnover ratio for a retail

You have observed that the total asset turnover ratio for a retail chain has increased steadily over the last three years. The most likely explanation is which of the following? a. Salaries for upper...

Q: Brianna Webb, a connoisseur of fine chocolate, opened Bri’s Sweets

Brianna Webb, a connoisseur of fine chocolate, opened Bri’s Sweets in Collegetown on February 1, 2011. The shop specializes in a selection of gourmet chocolate candies and a line of...

Q: Following are account balances (in millions of dollars) from a

Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31, 2011: T...

Q: State the equation for the total asset turnover ratio and explain how

State the equation for the total asset turnover ratio and explain how it is interpreted.

Q: Alpine Stables, Inc., was established in Denver, Colorado,

Alpine Stables, Inc., was established in Denver, Colorado, on April 1, 2011. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new a...

Q: The following are the summary account balances from a recent balance sheet

The following are the summary account balances from a recent balance sheet of Exxon Mobil Corporation. The accounts have normal debit or credit balances, but they are not necessarily listed in good or...

Q: Refer to the financial statements of American Eagle Outfitters in Appendix B

Refer to the financial statements of American Eagle Outfitters in Appendix B at the end of the book. Required: 1. State the amount of the largest expense on the income statement for the year ended J...

Q: Refer to the financial statements of Urban Outfitters in Appendix C at

Refer to the financial statements of Urban Outfitters in Appendix C at the end of the book. Required: 1. What is the company’s revenue recognition policy? 2. Assuming that $50 million of cost of sale...

Q: Refer to the financial statements of American Eagle Outfitters in Appendix B

Refer to the financial statements of American Eagle Outfitters in Appendix B, Urban Outfitters in Appendix C, and the Industry Ratio Report in Appendix D at the end of this book. Required: 1. By wha...

Q: Refer to the annual report for American Eagle Outfitters in Appendix B

Refer to the annual report for American Eagle Outfitters in Appendix B. Required: 1. The annual report or 10-K report for American Eagle Outfitters provides selected financial data for the last five...

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: 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: 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: Indicate the effect that each transaction/event listed here will have

Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (NE...

Q: Stoscheck Moving Corporation has been in operation since January 1, 2017

Stoscheck Moving Corporation has been in operation since January 1, 2017. It is now December 31, 2017, the end of the annual accounting period. The company has not done well financially during the fir...

Q: Refer to the financial statements of American Eagle Outfitters in Appendix B

Refer to the financial statements of American Eagle Outfitters in Appendix B and Urban Outfitters in Appendix C. Financial statements of American Eagle: Financial statements of Urban Outfitters: Req...

Q: Taos Company is completing the information processing cycle at the end of

Taos Company is completing the information processing cycle at the end of its fiscal year on December 31. Following are the correct balances at December 31 of the current year for the accounts both be...

Q: Refer to the financial statements of American Eagle Outfitters in Appendix B

Refer to the financial statements of American Eagle Outfitters in Appendix B at the end of the book. Financial Statements of American Eagle Outfitters: Required: 1. How much cash did the company pay...

Q: Refer to the financial statements of Urban Outfitters in Appendix C at

Refer to the financial statements of Urban Outfitters in Appendix C at the end of the book. Data from Urban Outfitters: Required: 1. How much is in the Prepaid Expenses and Other Current Assets acco...

Q: Refer to the financial statements of American Eagle Outfitters in Appendix B

Refer to the financial statements of American Eagle Outfitters in Appendix B, Urban Outfitters in Appendix C, and the Industry Ratio Report in Appendix D at the end of this book. Financial statements...

Q: If a company is successful in acquiring several large buildings at the

If a company is successful in acquiring several large buildings at the end of the year, what is the effect on the total asset turnover ratio? a. The ratio will increase. b. The ratio will not change....

Q: Jay, Inc., a party rental business, completed its first

Jay, Inc., a party rental business, completed its first year of operations on December 31. Because this is the end of the annual accounting period, the company bookkeeper prepared the following tentat...

Q: Mateo Inc. is a retailer of men’s and women’s clothing aimed

Mateo Inc. is a retailer of men’s and women’s clothing aimed at college-age customers. Listed below are additional transactions that Mateo was considering at the en...

Q: Ramirez Company is completing the information processing cycle at its fiscal year

Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjus...

Q: How is the total asset turnover ratio computed and interpreted?

How is the total asset turnover ratio computed and interpreted?

Q: Compute total assets for Romney’s Marketing Company based on the adjusted trial

Compute total assets for Romney’s Marketing Company based on the adjusted trial balance in Mini Exercise 8. Then compute the company’s total asset turnover (rounded to two decimal places...

Q: A firm wishes to maintain an internal growth rate of 7 percent

A firm wishes to maintain an internal growth rate of 7 percent and a dividend payout ratio of 25 percent. The current profit margin is 5 percent, and the firm uses no external financing sources. What...

Q: Chris Guthrie was recently hired by S&S Air, Inc

Chris Guthrie was recently hired by S&S Air, Inc., to assist the company with its financial planning and to evaluate the company’s performance. Chris graduated from college five...

Q: Find the following financial ratios for Smolira Golf Corp. (use

Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): Short-term solvency ratios: a. Current ratio...

Q: Braam Fire Prevention Corp. has a profit margin of 6.

Braam Fire Prevention Corp. has a profit margin of 6.80 percent, total asset turnover of 1.95, and ROE of 18.27 percent. What is this firm’s debt–equity ratio?

Q: If Roten Rooters, Inc., has an equity multiplier of 2

If Roten Rooters, Inc., has an equity multiplier of 2.80, total asset turnover of 1.15, and a profit margin of 5.5 percent, what is its ROE?

Q: From DuPont model. Using that framework, find the missing amount

From DuPont model. Using that framework, find the missing amount in each of the following cases: Case 1: ROE is 10 percent; net income is $200,000; the total asset turnover ratio is 5; and net sales a...

Q: Using the ratios and information given for Wal-Mart Stores,

Using the ratios and information given for Wal-Mart Stores, Inc., a retailer, analyze the short-term liquidity and operating efficiency of the firm as of January 31, 2014.

Q: Luna Lighting, a retail firm, has experienced modest sales growth

Luna Lighting, a retail firm, has experienced modest sales growth over the past three years but has had difficulty translating the expansion of sales into improved profitability. Using three years&aci...

Q: ABC Company and XYZ Company are competitors in the manufacturing industry.

ABC Company and XYZ Company are competitors in the manufacturing industry. The following ratios and financial information have been compiled for these two companies for the most recent year: Require...

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: If Wilkinson, Inc., has an equity multiplier of 1.

If Wilkinson, Inc., has an equity multiplier of 1.35, total asset turnover of 2.10, and a profit margin of 5.2 percent, what is its ROE?

Q: Answer the following multiple-choice questions: a. Which

Answer the following multiple-choice questions: a. Which of the following is not considered to be a nonrecurring item? 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of cha...

Q: Day Ko Incorporated presented the following comparative income statements for 2011 and

Day Ko Incorporated presented the following comparative income statements for 2011 and 2010: Required: a. How did 2011 net sales compare with 2010? b. How did 2011 net earnings compare with 2010? c. C...

Q: D. H. Muller Company presented the following income statement in

D. H. Muller Company presented the following income statement in its 2011 annual report: The asset side of the balance sheet is summarized as follows: Required: a. Based on these data, compute the fo...

Q: Dan Ervin was recently hired by East Coast Yachts to assist the

Dan Ervin was recently hired by East Coast Yachts to assist the company with its short-term financial planning and also to evaluate the company’s financial performance. Dan graduated...

Q: How is total asset turnover computed? Why would a financial statement

How is total asset turnover computed? Why would a financial statement user be interested in total asset turnover?

Q: Aneko Company reports the following ($000s): net sales of $

Aneko Company reports the following ($000s): net sales of $14,800 for 2015 and $13,990 for 2014; end-of-year total assets of $19,100 for 2015 and $17,900 for 2014. Compute its total asset turnover for...

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: 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: The following excerpts were taken from the notes to consolidated financial statements

The following excerpts were taken from the notes to consolidated financial statements in the 2006 annual report of the Novartis Group, the Swiss pharmaceutical company: Required: a. Determine whethe...

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: A comparison of 2017 to 2016 performance shows that Neir Company’s inventory

A comparison of 2017 to 2016 performance shows that Neir Company’s inventory turnover increased substantially although sales and inventory amounts were essentially unchanged. Which of the following st...

Q: Use the following industry-average ratios to construct a pro forma

Use the following industry-average ratios to construct a pro forma balance sheet for Phoebe’s Cat Foods, Inc.

Q: The D. A. Winston Corporation earned an operating profit margin

The D. A. Winston Corporation earned an operating profit margin of 10 percent based on sales of $10 million and total assets of $5 million last year. a. What was Winston’s total asset turnover ratio?...

Q: Sandra Company and Nova Inc. each signed lease agreements on January

Sandra Company and Nova Inc. each signed lease agreements on January 1, 2017. Nova’s lease qualified for capital lease treatment, but Sandra’s lease did not. All ot...

Q: Assume an investor uses the constant-growth DVM to value a

Assume an investor uses the constant-growth DVM to value a stock. Listed below are various situations that could affect the computed value of a stock. Look at each one of these individually and indica...

Q: Stroud Sporting Gear Inc. has a net profit margin of 9

Stroud Sporting Gear Inc. has a net profit margin of 9%, a total asset turnover of 2.4, total assets of $225 million, and total equity of $120 million. What is the company’s return on equity?

Q: The following table lists the 2015 and 2016 financial statements for Otago

The following table lists the 2015 and 2016 financial statements for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors. a. On the basis of the information provided,...

Q: Jack Arnold is a resident of Lubbock, Texas, where he

Jack Arnold is a resident of Lubbock, Texas, where he is a prosperous rancher and businessman. He has also built up a sizable portfolio of common stock, which, he believes, is due to the fact that he...

Q: Highgate Computer Company produces $1.8 million in profits from

Highgate Computer Company produces $1.8 million in profits from $27 million in sales. It has total assets of $15 million. a. Calculate Highgate’s total asset turnover and its net profit margin. b. Fin...

Q: P. Deen Enterprises Inc. has a total asset turnover ratio

P. Deen Enterprises Inc. has a total asset turnover ratio of 3.0 and a net profit margin of 9%. What is the company’s return on assets?

Q: Snapgram Corporation has a net profit margin of 8%, a total

Snapgram Corporation has a net profit margin of 8%, a total asset turnover of 2.0 times, total assets of $1 billion, and total equity of $500 million. What were the company’s sales and net profit?

Q: Depkline plc is a pharmaceutical company headquartered in the United Kingdom.

Depkline plc is a pharmaceutical company headquartered in the United Kingdom. Exhibit 7.26 presents financial statement ratios for Depkline for 2011, 2012, and 2013. Respond to each of the following q...

Q: A formula in financial analysis is: Return on equity =

A formula in financial analysis is: Return on equity = net profit margin × total asset turnover × equity multiplier. Suppose that the equity multiplier is fixed at 4.0, but that the net profit margin...

Q: Trademark Corp.’s financial manager collected the following information for its

Trademark Corp.’s financial manager collected the following information for its peer group to compare its performance against that of its peers. a. Explain how Trademark is perform...

Q: Carter, Inc., a manufacturer of electrical supplies, has an

Carter, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin of 4.9 percent, and a total asset turnover ratio of 2.6 times. Its peer group also has an ROE of 23.1 p...

Q: Grossman Enterprises has an equity multiplier of 2.6 times,

Grossman Enterprises has an equity multiplier of 2.6 times, total assets of $2,312,000, an ROE of 14.8 percent, and a total asset turnover ratio of 2.8 times. Calculate the firm’s sales and ROA?

Q: Blackwell Automotive’s balance sheet at the end of its most recent fiscal

Blackwell Automotive’s balance sheet at the end of its most recent fiscal year shows the following information? In addition, it was reported that the firm had a net income of $156,0...

Q: Recreational Supplies Co. has net sales of $11,655

Recreational Supplies Co. has net sales of $11,655,000, an ROE of 17.64 percent, and a total asset turnover of 2.89 times. If the firm has a debt-to-equity ratio of 1.43, what is the company’s net inc...

Q: Nutmeg Houseware, Inc., has an operating profit margin of 10

Nutmeg Houseware, Inc., has an operating profit margin of 10.3 percent on revenues of $24,547,125 and total assets of $8,652,352. a. Calculate the company’s total asset turnover ratio and its operati...

Q: If a company’s net profit margin is –5 percent, its

If a company’s net profit margin is –5 percent, its total asset turnover is 1.5 times, and its equity multiplier is 1.2 times, its return on equity is closest to a. –9.0 percent. b. –7.5 percent. c. –...

Q: Lemmon Enterprises has a total asset turnover of 2.1 and

Lemmon Enterprises has a total asset turnover of 2.1 and a net profit margin of 7.5%. If its equity multiplier is 1.90, what is the ROE for Lemmon Enterprises?

Q: What are the efficiency ratios, and what do they measure?

What are the efficiency ratios, and what do they measure? Why, for some firms, is the total asset turnover more important than the fixed asset turnover?

Q: Last year ABC companies had accounts receivable turnover of 15, total

Last year ABC companies had accounts receivable turnover of 15, total asset turnover of 4.5, and total assets of $1,000,000. What was the value of ABC’s accounts receivable? What was the value of its...

Q: What additional information does the fixed asset turnover ratio provide over the

What additional information does the fixed asset turnover ratio provide over the total asset turnover ratio? For which industries does it carry greater significance?

Q: Calculate the inventory turnover, days’ sales in inventory, receivables turnover

Calculate the inventory turnover, days’ sales in inventory, receivables turnover, days’ sales in receivables, and total asset turnover ratios for 2013 and 2014 for...

Q: If Roten Rooters, Inc., has an equity multiplier of 1.27,

If Roten Rooters, Inc., has an equity multiplier of 1.27, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE?

Q: Jack Corp. has a profit margin of 6.4 percent, total

Jack Corp. has a profit margin of 6.4 percent, total asset turnover of 1.77, and ROE of 15.84 percent. What is this firm’s debt-equity ratio?

Q: A firm wishes to maintain an internal growth rate of

A firm wishes to maintain an internal growth rate of 7.1 percent and a dividend payout ratio of 25 percent. The current profit margin is 6.5 percent, and the firm uses no external financing sources. W...

Q: If Roten Rooters, Inc., has an equity multiplier of 1.27,

If Roten Rooters, Inc., has an equity multiplier of 1.27, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE?

Q: Jack Corp. has a profit margin of 6.4 percent, total

Jack Corp. has a profit margin of 6.4 percent, total asset turnover of 1.77, and ROE of 15.84 percent. What is this firm’s debt-equity ratio?

Q: A firm wishes to maintain an internal growth rate of

A firm wishes to maintain an internal growth rate of 7.1 percent and a dividend payout ratio of 25 percent. The current profit margin is 6.5 percent, and the firm uses no external financing sources. W...

Q: Bob Adkins has recently been approached by his first cousin, Ed

Bob Adkins has recently been approached by his first cousin, Ed Lamar, with a proposal to buy a 15 percent interest in Lamar Swimwear. The firm manufactures stylish bathing suits and sunscreen product...

Q: Jerry Rice and Grain Stores has $4,780,000

Jerry Rice and Grain Stores has $4,780,000 in yearly sales. The firm earns 4.5 percent on each dollar of sales and turns over its assets 2.7 times per year. It has $123,000 in current liabilities and...

Q: Williams Oil Company had a return on stockholders’ equity of 18 percent

Williams Oil Company had a return on stockholders’ equity of 18 percent during 2016. Its total asset turnover was 1.0 times, and its equity multiplier was 2.0 times. Calculate the company’s net profit...

Q: Use the following industry average ratios to construct a pro forma balance

Use the following industry average ratios to construct a pro forma balance sheet for Mendoza Distributors, Inc.

Q: The balance sheet and income statement for the J. P.

The balance sheet and income statement for the J. P. Robard Manufacturing Company are as follows:

Q: The last two years of financial statements for Blunt Industries are as

The last two years of financial statements for Blunt Industries are as follows: a. Calculate the following financial ratios for 2015 and 2016: b. Evaluate the firm’s financial p...

Q: The R. M. Smithers Corporation had an operating profit margin

The R. M. Smithers Corporation had an operating profit margin of 10 percent based on sales of $10 million and total assets of $5 million last year. a. What was Smithers’s total asset turnover ratio?...

Q: The T. P. Jarmon Company manufactures and sells a line

The T. P. Jarmon Company manufactures and sells a line of exclusive sportswear. The firm’s sales were $600,000 for the year just ended, and its total assets exceeded $400,000. The c...

Q: Last year Triangular Resources earned $5 million in net operating income

Last year Triangular Resources earned $5 million in net operating income and had an operating profit margin of 20 percent. If the firm’s total asset turnover ratio was 1.5, what was the firm’s investm...

Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader

Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and inco...

Q: The last two years of financial statements for Pamplin, Inc.,

The last two years of financial statements for Pamplin, Inc., are as follows: a. Compute the following ratios for both 2015 and 2016. b. Compare Pamplin’s financial ratios to t...

Q: If we know that a firm has a net profit margin of

If we know that a firm has a net profit margin of 4.5%, total asset turnover of 0.72, and a financial leverage multiplier of 1.43, what is its ROE? What is the advantage to using the DuPont system to...

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: 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: Companies in the same line of business usually have similar investments and

Companies in the same line of business usually have similar investments and capital structures, and an opportunity for similar rates of return. One of the key performance indicators that is used to as...

Q: Canadian Tire Corporation, Limited is one of Canada’s best-known

Canadian Tire Corporation, Limited is one of Canada’s best-known retailers. Obtain a copy of Canadian Tire’s financial statements for the year ended January 3, 2015, through SEDAR (www.sedar.com) or o...

Q: Consider a retailing firm with a net profit margin of 3.

Consider a retailing firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets of $44 million, and a book value of equity of $18 million. a. What is the firm’s current ROE? b....

Q: 1. What is DuPont analysis? a. A specialized

1. What is DuPont analysis? a. A specialized set of financial ratios. b. Financial ratio analysis for chemical firms. c. It separates profitability ratios into component parts. d. It relates chang...

Q: 1. What does the internal growth rate measure? a

1. What does the internal growth rate measure? a. How quickly firm assets can grow without any new sales. b. How quickly sales can grow without issuing new shares of stock. c. How quickly sales can gr...

Q: Chorus Aviation Inc. is a Canadian aviation holding company that provides

Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a “significant part of Air Canada’s domestic and trans border network.” Chorus indicates in Note 1...

Q: Companies often use ratios as a basis for planning. The technique

Companies often use ratios as a basis for planning. The technique is to assume the business being planned will achieve targeted levels of certain ratios and then calculate the financial statement amo...

Q: The Protek Company is a large manufacturer and distributor of electronic components

The Protek Company is a large manufacturer and distributor of electronic components. Because of some successful new products marketed to manufacturers of personal computers, the firm has recently und...

Q: Chorus Aviation Inc. is a Canadian aviation holding company that provides

Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a “significant part of Air Canada’s domestic and transborder network.” Chorus indicates in Note 1 t...

Q: If Rogers, Inc., has an equity multiplier of 1.

If Rogers, Inc., has an equity multiplier of 1.43, total asset turnover of 1.87, and a profit margin of 6.05 percent, what is its ROE?

Q: Jackson Corp. has a profit margin of 5.8 percent

Jackson Corp. has a profit margin of 5.8 percent, total asset turnover of 1.75, and ROE of 13.85 percent. What is this firm’s debt-equity ratio?

Q: A firm wishes to maintain an internal growth rate of 6.

A firm wishes to maintain an internal growth rate of 6.4 percent and a dividend payout ratio of 25 percent. The current profit margin is 5.7 percent, and the firm uses no external financing sources. W...

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: Lok Co. reports net sales of $5,856,

Lok Co. reports net sales of $5,856,480 for Year 2 and $8,679,690 for Year 3. End-of-year balances for total assets are Year 1, $1,686,000; Year 2, $1,800,000; and Year 3, $1,982,000. (a) Compute Lok’...

Q: Review the chapter’s opening feature involving Elon Musk and SpaceX. Assume

Review the chapter’s opening feature involving Elon Musk and SpaceX. Assume that the company currently has net sales of $8,000,000 and that it is planning an expansion that will increase net sales by...

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. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of (a) S...

Q: Comparative figures for Apple and Google follow. / Required

Comparative figures for Apple and Google follow. Required 1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown. 2. In the current year, which company...

Q: Comparative figures for Samsung, Apple, and Google follow.

Comparative figures for Samsung, Apple, and Google follow. Required 1. Compute total asset turnover for the most recent two years for Samsung using the data shown. 2. Is the change in Samsungâ&#...

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: Selected ledger account balances for Business Solutions follow. /

Selected ledger account balances for Business Solutions follow. Required 1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2021. Compute amounts...

Q: Canadian Tire Corporation, Limited is one of Canada's best-known

Canadian Tire Corporation, Limited is one of Canada's best-known retailers. Obtain a copy of Canadian Tire's financial statements for each of the years ended December 30, 2017, and December 31, 2016,...

Q: A comparison of 20X1 to 20X0 performance shows that Neir Company’s inventory

A comparison of 20X1 to 20X0 performance shows that Neir Company’s inventory turnover increased substantially although sales and inventory amounts were essentially unchanged. Required: Which of the f...

Q: A formula in financial analysis is the following: Return on equity

A formula in financial analysis is the following: Return on equity = net profit margin * total asset turnover * equity multiplier. Suppose that the equity multiplier is fixed at 3.5, but that the net...

Q: Use the DuPont system and the following data to find return on

Use the DuPont system and the following data to find return on equity. Leverage ratio 2.2 Total asset turnover 2.0 Net profit margin 5.5% Dividend payout ratio 31.8%

Q: Outdoor Play Inc. reported the following facts in its 2020 annual

Outdoor Play Inc. reported the following facts in its 2020 annual report: net sales of $9,683 million for 2019 and $9,050 million for 2020; total end-of-year assets of $10,690 million for 2019 and $13...

Q: Comparative figures for Apple and Google follow. / Required

Comparative figures for Apple and Google follow. Required 1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown. 2. in the current year, which company...

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: Comparative figures for Samsung, Apple, and Google follow.

Comparative figures for Samsung, Apple, and Google follow. Required 1. Compute total asset turnover for the most recent two years for Samsung using the data shown. 2. Is the change in Samsungâ&#...

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. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of (a) S...

Q: Anoka Company reports the following: net sales of $14,

Anoka Company reports the following: net sales of $14,800 for Year 2 and $13,990 for Year 1; end-of-year total assets of $19,100 for Year 2 and $17,900 for Year 1. 1. Compute total asset turnover for...

Q: We are evaluating whether or not to make a loan to a

We are evaluating whether or not to make a loan to a company. Indicate whether each of the following separate trends would make us more or less likely to make the loan. a. Current ratio is increasing,...

Q: Selected ledger account balances for Business Solutions follow. /

Selected ledger account balances for Business Solutions follow. Required 1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2022. Compute amounts f...

Q: Access the 2017 consolidated financial statements for Loblaw Companies Limited by going

Access the 2017 consolidated financial statements for Loblaw Companies Limited by going to investor relations section of the company’s website. Answer the questions below. Round percentages to one dec...

Q: The following information was taken from the 2019 financial statements of Nordstrom

The following information was taken from the 2019 financial statements of Nordstrom and Macy's. Using this information, compute the following ratios for 2019: ROE, ROA, capital structure leverage, pro...

Q: Excerpts from the fiscal 2019 financial report of Cisco Systems, a

Excerpts from the fiscal 2019 financial report of Cisco Systems, a leading Internet networker, are provided below (dollars in millions). From the information below, compute ROE, ROA, capital structure...

Q: Edgemont Repairs began operations on January 1, 2018. The 2018

Edgemont Repairs began operations on January 1, 2018. The 2018, 2019, and 2020 financial statements follow: On January 1, 2020, the company expanded operations by taking out a $40,000 long-term loan a...

Q: Access the Data Analytic worksheet at www.wiley.com/

Access the Data Analytic worksheet at www.wiley.com/go/pratt/financialaccountinglle. a. Create a table that compares the performance of ExxonMobil and Imperial Oil, competing companies in the oil and...

Q: Access the Data Analytic worksheet at www.wiley.com/

Access the Data Analytic worksheet at www.wiley.com/go/pratt/financialaccountinglle. a. Create a table that compares the performance of Caterpillar and AGCO, competing companies in the farm and constr...

Q: Access the Data Analytic worksheet at www.wiley.com/

Access the Data Analytic worksheet at www.wiley.com/go/pratt/financialaccountinglle. a. Create a table that compares the performance of Caterpillar and AGCO, competing firms in the farm and constructi...

Q: Access the Data Analytic worksheet at www.wiley.com/

Access the Data Analytic worksheet at www.wiley.com/go/pratt/financialaccountinglle. a. Create a table that compares the performance of DuPont and Lyondel!Basell Industries, competing firms in the che...

Q: Excerpts from the 2019 financial report of Intel, a computer-

Excerpts from the 2019 financial report of Intel, a computer-processor manufacturer, are as follows (dollars in millions). From the information above, compute ROE, ROA, capital structure leverage, pro...

Q: P. Deen Enterprises Inc. has a total asset turnover ratio

P. Deen Enterprises Inc. has a total asset turnover ratio of 3.0 and a net profit margin of 9%. What is the company’s return on assets?

Q: Stroud Sporting Gear Inc. has a net profit margin of 9

Stroud Sporting Gear Inc. has a net profit margin of 9%, a total asset turnover of 2.4, total assets of $225 million, and total equity of $120 million. What is the company’s return on equity?

Q: Snapgram Corporation has a net profit margin of 8%, a total

Snapgram Corporation has a net profit margin of 8%, a total asset turnover of 2.0 times, total assets of $1 billion, and total equity of $500 million. What were the company’s sales and net profit?

Q: For its fiscal year ending on June 30, 2018, Microsoft

For its fiscal year ending on June 30, 2018, Microsoft reported net income of $16.57 billion from sales of $110.36 billion. The company also reported total assets of $258.85 billion. a. Calculate Micr...

Q: Assume an investor uses the constant-growth DVM to value a

Assume an investor uses the constant-growth DVM to value a stock. Listed are various situations that could affect the computed value of a stock. Look at each one of these individually and indicate whe...

Q: Ramirez Company is completing the information processing cycle at its fiscal year

Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjus...

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 Johns investor relations). Select SEC Filings or Annual Report or Financials (whicheve...

Q: Refer to the financial statements of Walmart Inc. in Appendix C

Refer to the financial statements of Walmart Inc. in Appendix C at the end of this book. All dollar amounts are in millions. 1. Did the company accrue more or pay more in income taxes during the most...

Q: Refer to the financial statements of Target (Appendix B) and

Refer to the financial statements of Target (Appendix B) and Walmart (Appendix C) at the end of this book. Required: 1. (a) Compute return on assets for the most recent year. Round the percentage to t...

Q: 4. The two components of the return on asset ratio are

4. The two components of the return on asset ratio are a. Gross profit margin ratio and return on equity ratio. b. Net profit margin ratio and earnings per share ratio. c. Net profit margin ratio and...

Q: Zoltar Moving Co. has been in operation for over 30 years

Zoltar Moving Co. has been in operation for over 30 years providing moving services for local households and businesses. It is now December 31, 2024, the end of the annual accounting period. Assume th...

Q: Taos Company is completing the information processing cycle at the end of

Taos Company is completing the information processing cycle at the end of its fiscal year on December 31. Following are the correct balances at December 31 of the current year for the accounts both be...

Q: Refer to the financial statements of Target Corporation in Appendix B at

Refer to the financial statements of Target Corporation in Appendix B at the end of this book. All dollar amounts are in millions. 1. Did the company accrue more or pay more for wages and benefits in...

Q: Mindspin Labs Inc. is a manufacturing firm that has experienced strong

Mindspin Labs Inc. is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the “service economy” by eliminating its...