Question

Edman Company is a merchandiser that has provided the following balance sheet and income statement for...

Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year.

Beginning Balance Ending Balance
Assets
Cash $ 62,800 $ 150,000
Accounts receivable 160,000 180,000
Inventory 230,000 240,000
Property, plant & equipment (net) 833,000 793,000
Other assets 37,000 37,000
Total assets $ 1,322,800 $ 1,400,000
Liabilities & Stockholders’ Equity
Accounts payable $ 70,000 $ 80,000
Bonds payable 550,000 550,000
Common stock 410,000 410,000
Retained earnings 292,800 360,000
Total liabilities & stockholders’ equity $ 1,322,800 $ 1,400,000
This Year
Sales $ 2,500,000
Variable expenses:
Cost of goods sold 1,600,000
Variable selling expense 240,000
Total variable expenses 1,840,000
Contribution margin 660,000
Fixed expenses:
Fixed selling expenses 220,000
Fixed administrative expenses 300,000
Total fixed expenses 520,000
Net operating income 140,000
Interest expense (8%) 44,000
Net income before tax 96,000
Tax expense (30%) 28,800
Net income $ 67,200

What is this alternative’s estimated net profit margin percentage, total asset turnover, equity multiplier, and return on equity (ROE)?

1. Net Profit margin % ______

2. Total asset turnover ______

3. Equity Multiplier ____

4. ROE - Return on Equity ______

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Edman Company is a merchandiser that has provided the following balance sheet and income statement for...
Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Beginning Balance Ending Balance Assets Cash $ 62,800 $ 150,000 Accounts receivable 160,000 180,000 Inventory 230,000 240,000 Property, plant & equipment (net) 833,000 793,000 Other assets 37,000 37,000 Total assets $ 1,322,800 $ 1,400,000 Liabilities & Stockholders’ Equity Accounts payable $ 70,000 $ 80,000 Bonds payable 550,000 550,000 Common stock 410,000 410,000 Retained earnings 292,800 360,000 Total liabilities & stockholders’ equity $...
The following income statement and balance sheets for Laser World are provided: LASER WORLD Income Statement...
The following income statement and balance sheets for Laser World are provided: LASER WORLD Income Statement For the year ended December 31, 2018   Sales revenue $ 2,380,400   Cost of goods sold 1,560,000      Gross profit 820,400   Expenses:       Operating expenses 343,000       Depreciation expense 61,000       Loss on sale of land 4,400       Interest expense 22,000       Income tax expense 54,000             Total expenses 484,400      Net income $   336,000 LASER WORLD Balance Sheet December 31   2018   2017   Assets   Current assets:       Cash $ 128,000   ...
13) Carver Company's balance sheet and income statement are provided below: Carver Company Balance Sheet December...
13) Carver Company's balance sheet and income statement are provided below: Carver Company Balance Sheet December 31 Assets Cash $ 40,000 Accounts receivable 52,000 Inventory 80,000 Plant and equipment, net of depreciation 280,000 Land held for future plant expansion 76,000 Total assets $ 528,000 Liabilities and Stockholders' Equity Accounts payable $ 45,000 Notes payable 58,000 Capital stock, no par 240,000 Retained earnings 185,000 Total liabilities and stockholders' equity $ 528,000 Carver Company Income Statement For the Year Ended December 31...
The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: Balance...
The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: Balance Sheet ($000) Cash $ 500 Accounts receivable 2,000 Inventories 1,000 Current assets $3,500 Net fixed assets 4,500 Total assets $8,000 Accounts payable $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners’ equity 4,000 Total liabilities and owners’ equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit $4,700 Operating expenses (includes $500...
Income statement and balance sheet data for The Sports Shack are provided below. The Sports Shack...
Income statement and balance sheet data for The Sports Shack are provided below. The Sports Shack Income Statements For the years ended December 31 2019 2018 Sales revenue $8,200,000 $6,600,000 Cost of goods sold 6,100,000 4,700,000 Gross profit 2,100,000 1,900,000        Expenses:            Operating expenses 1,450,000 1,400,000            Depreciation expense 90,000 100,000            Interest expense 25,000 50,000            Income tax expense 95,000 80,000                Total expenses 1,660,000 1,630,000 Net income $440,000 $270,000 The Sports Shack Balance Sheets December 31 Assets 2019 2018 2017 Current assets:         Cash...
The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows: DATA (All...
The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows: DATA (All amounts in SAR unless otherwise indicated, all sales are on credit and no hard keys.) Balance Sheet: ABC Corporation Balance Sheet Other current assets Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES (DEBT) AND EQUITY Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities Common stock (par & paid in capital) Retained earnings Total common...
Ivanhoe Corporation recently filed the following financial statements with the SEC. Ivanhoe Corporation Income Statement for...
Ivanhoe Corporation recently filed the following financial statements with the SEC. Ivanhoe Corporation Income Statement for the Fiscal Year Ended July 31, 2017 Net sales $58,589 Cost of products sold 41,674 Gross profit $16,915 Selling, general, and administrative expenses 7,466 Depreciation 848 Operating income (loss) $8,601 Interest expense 519 Earnings (loss) before income taxes $8,082 Income taxes 2,829 Net earnings (loss) $5,253 Ivanhoe Corporation Balance Sheet as of July 31, 2017 Assets Liabilities and Stockholders’ Equity Cash and marketable securities...
Doonan Corporation has provided the following financial data from its balance sheet and income statement: Year...
Doonan Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Total assets $ 1,489,000 $ 1,440,000 Stockholders' equity: Common stock, $4 par value $ 360,000 $ 360,000 Additional paid-in capital $ 70,000 $ 70,000 Retained earnings $ 570,000 $ 550,000 Total stockholders' equity $ 1,000,000 $ 980,000 Interest expense $ 15,000 Income taxes (35%) $ 14,162 Net income $ 26,300 The market price of common stock at the end of Year...
Selected balance sheet and income statement information for ABC follows. $ millions Jan. 31, 2016 Feb....
Selected balance sheet and income statement information for ABC follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,583 $38,473 Nonoperating assets 2,241 1,748 Total assets 42,824 40,221 Operating liabilities 15,018 13,527 Nonoperating liabilities 21,285 17,167 Total liabilities 36,303 30,694 Total stockholders' equity 6,521 9,527 Sales 88,999 Net operating profit before tax (NOPBT) 12,024 Nonoperting expense before tax 778 Tax expense 4,088 Net income 7,158 Round answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute ROE...
Selected balance sheet and income statement information for TGHI follows. $ millions Jan. 31, 2016 Feb....
Selected balance sheet and income statement information for TGHI follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,583 $38,473 Nonoperating assets 2,241 1,748 Total assets 42,824 40,221 Operating liabilities 15,018 13,527 Nonoperating liabilities 21,285 17,167 Total liabilities 36,303 30,694 Total stockholders' equity 6,521 9,527 Sales 88,999 Net operating profit before tax (NOPBT) 12,024 Nonoperting expense before tax 778 Tax expense 4,088 Net income 7,158 Round answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute ROE...