Return on assets a. measures overall profitability of total assets b. all are correct c. is...
Return on assets
| a. |
measures overall profitability of total assets |
|
| b. |
all are correct |
|
| c. |
is a profitability ratio |
|
| d. |
is calculated: net income divided by average total assets |
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Return on assets
a.
measures overall profitability of total assets
b.
all are correct
c.
is...
1) How is the current ratio calculated? a. current assets minus current liabilities b. total assets...
1) How is the current ratio calculated? a. current assets minus current liabilities b. total assets divided by total liabilities c. total assets minus total liabilities d. current assets divided by current liabilities 2) The common size income statement reports each income statement item as a percentage of a. net sales b. net income c. gross sales d. total assets
Profitability ratios reflect the net result of all the firm's erect. B policies and operating decisions....
Profitability ratios reflect the net result of all the firm's erect. B policies and operating decisions. The profitability ratios include the: (1) Operating profit margin, (2) Net profit margin, (3) Return on total assets (ROA), (4) Basic earning power (BEP) ratio, and (5) Return on common equity (ROE). The operating profit margin indicates what percentage of sales remain after et B are accounted for. It is a measure of the firm's operating effidency. Its equation is: B. It measures the...
1. Return on Assets measures a firm's: a. profitable use of its assets b. use...
1. Return on Assets measures a firm's: a. profitable use of its assets b. use of financial leverage c. return on shareholders investment d. profitability of sales e. cost effectiveness of its operating activities 2. The Current ratio of a firm is 1.3, If the firm uses cash to pay short-term notes-payable, would the transaction increase or decrease the current ratio and Return on Asset ratio? 3. Which of the following could cause return on equity to increase, all...
5.Gomez Company reports the following amounts for 2019: Net income $ 120,000 Average total assets 1,500,000...
5.Gomez Company reports the following amounts for 2019: Net income $ 120,000 Average total assets 1,500,000 The 2019 return on assets is: a. 5.6%. b. 7.0%. C. 8.0%. d. 10.0%. 6. The debt ratio measures a. the company's profitability. b. whether interest can be paid on debt in the current year. C. the proportion of interest paid relative to dividends paid. d. total liabilities as a percent of total assets.
The return on assets (ROA) model measures: Group of answer choices net profit divided by total...
The return on assets (ROA) model measures: Group of answer choices net profit divided by total assets multiplied by the asset turnover net profit margin times the equity multiplier net profit margin times asset turnover revenues divided by net profit times the asset turnover
Six Measures of Solvency or Profitability The following data were taken from the financial statements of...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 Preferred dividends (100,000) Common dividends...
Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures...
Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover Return on total assets Return on stockholders' equity Return on common stockholders' equity Earnings per share on common stock $8,260,000 = [($5,785,000 + $5,595,000) = 2] → ($791,340 + $127,000) = [($6,609,000 + $6,419,000) = 2] $791,340 = [($4,079,000 + $3,875,050) = 2] ✓ ($791,340 - $65,000) = [($3,591,500 + $3,447,840) = 2] → ($791,340 - $65,000) 250,000 shares $35 =...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year Property, plant, and equipment (net) Liabilities: $1,801,800 Current liabilities Note payable, 6%, due in 15 years Total liabilities $171,000 858,000 $1,029,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $1,543,500 1,543,500 Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of...
Net income divided by sales is the correct formula for calculating: a. a current ratio. b....
Net income divided by sales is the correct formula for calculating: a. a current ratio. b. profit margin on sales. c. a corporate evaluation. d. return on total assets. e. a liquidity ratio.
Profitability ratios: l. Profit margin % m. Return on assets % n. Return on equity %...
Profitability ratios: l. Profit margin % m. Return on assets % n. Return on equity % SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 336,329 Cost of goods sold 231,000 Depreciation 21,600 Earnings before interest and taxes $ 83,729 Interest paid 14,400 Taxable income $ 69,329 Taxes (21%) 14,559 Net income $ 54,770 Dividends $ 21,000 Retained earnings 33,770 Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and...
Profitability ratios reflect the net result of all the firm's erect. B policies and operating decisions. The profitability ratios include the: (1) Operating profit margin, (2) Net profit margin, (3) Return on total assets (ROA), (4) Basic earning power (BEP) ratio, and (5) Return on common equity (ROE). The operating profit margin indicates what percentage of sales remain after et B are accounted for. It is a measure of the firm's operating effidency. Its equation is: B. It measures the...
5.Gomez Company reports the following amounts for 2019: Net income $ 120,000 Average total assets 1,500,000 The 2019 return on assets is: a. 5.6%. b. 7.0%. C. 8.0%. d. 10.0%. 6. The debt ratio measures a. the company's profitability. b. whether interest can be paid on debt in the current year. C. the proportion of interest paid relative to dividends paid. d. total liabilities as a percent of total assets.
Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover Return on total assets Return on stockholders' equity Return on common stockholders' equity Earnings per share on common stock $8,260,000 = [($5,785,000 + $5,595,000) = 2] → ($791,340 + $127,000) = [($6,609,000 + $6,419,000) = 2] $791,340 = [($4,079,000 + $3,875,050) = 2] ✓ ($791,340 - $65,000) = [($3,591,500 + $3,447,840) = 2] → ($791,340 - $65,000) 250,000 shares $35 =...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year Property, plant, and equipment (net) Liabilities: $1,801,800 Current liabilities Note payable, 6%, due in 15 years Total liabilities $171,000 858,000 $1,029,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $1,543,500 1,543,500 Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of...
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