The Cavo Company has an ROA of 10 percent, a profit margin of12.75 percent, and an ROE of 18.75 percent.
What is the companyâs total asset turnover? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
Total asset turnover times
What is the equity multiplier? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)
Equity multiplier times
The Cavo Company has an ROA of 10 percent, a profit margin of12.75 percent, and an ROE of 18.75 percent.
What is the companyâs total asset turnover? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
Total asset turnover times
What is the equity multiplier? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)
Equity multiplier times
Related questions
Y3K, Inc., has sales of $7,395, total assets of $3,485, and a debt-equity ratio of .26. Assume the return on equity is 17 percent.
a. What is its equity multiplier? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
b. What is its total asset turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
c. What is its profit margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
| d. What is its net income? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Bethesda Mining Company reports the following balance sheetinformation for 2015 and 2016.
| BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016 | |||||||||||||||||
| 2015 | 2016 | 2015 | 2016 | ||||||||||||||
| Assets | Liabilities and Ownersâ Equity | ||||||||||||||||
| Current assets | Current liabilities | ||||||||||||||||
| Cash | $ | 70,322 | $ | 88,509 | Accounts payable | $ | 185,922 | $ | 193,611 | ||||||||
| Accounts receivable | 66,281 | 86,639 | Notes payable | 81,020 | 132,588 | ||||||||||||
| Inventory | 114,322 | 178,920 | Total | $ | 266,942 | $ | 326,199 | ||||||||||
| Total | $ | 250,925 | $ | 354,068 | Long-term debt | $ | 229,000 | $ | 165,750 | ||||||||
| Ownersâ equity | |||||||||||||||||
| Common stock and paid-in surplus | $ | 226,000 | $ | 226,000 | |||||||||||||
| Fixed assets | Accumulated retained earnings | 187,930 | 226,197 | ||||||||||||||
| Net plant and equipment | $ | 658,947 | $ | 590,078 | Total | $ | 413,930 | $ | 452,197 | ||||||||
| Total assets | $ | 909,872 | $ | 944,146 | Total liabilities and ownersâ equity | $ | 909,872 | $ | 944,146 | ||||||||
Based on the balance sheets given for Bethesda Mining, calculatethe following financial ratios for each year:
a. Current ratio. (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)
| Current ratio | ||
| 2015 | times | |
| 2016 | times | |
b. Quick ratio. (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)
| Quick ratio | ||
| 2015 | times | |
| 2016 | times | |
c. Cash ratio. (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)
| Cash ratio | ||
| 2015 | times | |
| 2016 | times | |
d. Debtâequity ratio and equity multiplier.(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)
| Debtâequity ratio | Equity multiplier | ||||||
| 2015 | times | times | |||||
| 2016 | times | times | |||||
e. Total debt ratio. (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)
| Total debt ratio | |||
| 2015 | times | ||
| 2016 | times | ||
ANSWER ALL PARTS
In response to complaints about high prices, a grocery chainruns the following advertising campaign: âIf you pay your child $1to go buy $31 worth of groceries, then your child makes about twiceas much on the trip as we do.â Youâve collected the followinginformation from the grocery chainâs financial statements:
| (millions) | |||
| Sales | $ | 770.00 | |
| Net income | 12.25 | ||
| Total assets | 360.00 | ||
| Total debt | 156.50 | ||
What is the childâs profit margin? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
Childâs profit margin _____ %
What is the storeâs profit margin? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
Storeâs profit margin _____ %
What is the store's ROE? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
ROE ______% ?
