Maggieâs Skunk Removal Corp.âs 2015 income statement listed net sales of $13.6 million, gross profit of $8.40 million, EBIT of $6.7 million, net income available to common stockholders of $4.3 million, and common stock dividends of $2.3 million. The 2015 year-end balance sheet listed total assets of $53.6 million and common stockholders' equity of $22.1 million with 2.0 million shares outstanding.
Calculate the profit margin. (Round your answer to 2 decimal places.)
Profit margin
%
Calculate the profit margin. (Round your answer to 2 decimal places.)
Gross profit margin
%
Calculate the profit margin. (Round your answer to 2 decimal places.)
Operating profit margin
%
Calculate the basic earnings power. (Round your answer to 2 decimal places.)
Basic earnings power
%
Calculate the return on assets. (Round your answer to 2 decimal places.)
Return on assets
%
Calculate the return on equity. (Round your answer to 2 decimal places.)
Return on equity
%
Calculate the dividend payout. (Round your answer to 2 decimal places.)
Dividend payout
%
Maggieâs Skunk Removal Corp.âs 2015 income statement listed net sales of $13.6 million, gross profit of $8.40 million, EBIT of $6.7 million, net income available to common stockholders of $4.3 million, and common stock dividends of $2.3 million. The 2015 year-end balance sheet listed total assets of $53.6 million and common stockholders' equity of $22.1 million with 2.0 million shares outstanding.
Calculate the profit margin. (Round your answer to 2 decimal places.)
Profit margin
%
Calculate the profit margin. (Round your answer to 2 decimal places.)
Gross profit margin
%
Calculate the profit margin. (Round your answer to 2 decimal places.)
Operating profit margin
%
Calculate the basic earnings power. (Round your answer to 2 decimal places.)
Basic earnings power
%
Calculate the return on assets. (Round your answer to 2 decimal places.)
Return on assets
%
Calculate the return on equity. (Round your answer to 2 decimal places.)
Return on equity
%
Calculate the dividend payout. (Round your answer to 2 decimal places.)
Dividend payout
%
Related questions
Problem 3-6
Du Pont Analysis
Gardial & Son has an ROA of 9%, a 3% profit margin, and a return on equity equal to 13%.
What is the company's total assets turnover? Round your answer to two decimal places.
What is the firm's equity multiplier? Round your answer to two decimal places.
Current and Quick Ratios
Ace Industries has current assets equal to $7 million. The company's current ratio is 2.5, and its quick ratio is 2.0.
What is the firm's level of current liabilities? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000
$
What is the firm's level of inventories? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000
$
Problem 3-8
Profit Margin and Debt Ratio
Assume you are given the following relationships for the Haslam Corporation:
| Sales/total assets | 1.9 |
| Return on assets (ROA) | 3% |
| Return on equity (ROE) | 9% |
Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places.
%
Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
%
Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
%
Problem 3-9
Current and Quick Ratios
The Nelson Company has $1,650,000 in current assets and $550,000 in current liabilities. Its initial inventory level is $330,000, and it will raise funds as additional notes payable and use them to increase inventory.
How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.3? Round your answer to the nearest cent.
$
What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round your answer to two decimal places.
Problem 3-10
Times-Interest-Earned Ratio
The Morris Corporation has $850,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $3.4 million, its average tax rate is 40%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 5 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Round intermediate calculations to two decimal places. Round your answer to two decimal places.
