Business, 18.06.2020 21:57 owlette2001

The 2018 income statement of Adrian Express reports sales of $20,510,000, cost of goods sold of $12,550,000, and net income of $1,940,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS
Balance Sheet
December 31, 2018 and 2017
2018 2017
Assets
Current assets:
Cash$820,000 $920,000
Accounts receivable 1,750,000 1,190,000
Inventory 2,210,000 1,650,000
Long-term assets 5,020,000 4,400,000

Total assets$9,800,000 $8,160,000
Liabilities and Stockholders' Equity
Current liabilities$2,052,000 $1,832,000
Long-term liabilities 2,508,000 2,572,000
Common stock 2,050,000 1,990,000
Retained earnings 3,190,000 1,766,000

Total liabilities and stockholders' equity$9,800,000 $8,160,000
Industry averages for the following profitability ratios are as follows:
Gross profit ratio45%
Return on assets25%
Profit margin15%
Asset turnover2.5times
Return on equity35%
Required:Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 01:30

Monica needs to assess the slide sequence and make quick changes to it. which view should she use in her presentation program? a. outline b. slide show c. slide sorter d. notes page e. handout

Answers: 1

Answer

Business, 22.06.2019 06:30

Selected data for stick’s design are given as of december 31, year 1 and year 2 (rounded to the nearest hundredth). year 2 year 1 net credit sales $25,000 $30,000 cost of goods sold 16,000 18,000 net income 2,000 2,800 cash 5,000 900 accounts receivable 3,000 2,000 inventory 2,000 3,600 current liabilities 6,000 5,000 compute the following: 1. current ratio for year 2 2. acid-test ratio for year 2 3. accounts receivable turnover for year 2 4. average collection period for year 2 5. inventory turnover for year 2

Answers: 2

Answer

Business, 22.06.2019 15:00

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Answers: 2

Answer

Business, 22.06.2019 19:10

You have just been hired as a brand manager at kelsey-white, an american multinational consumer goods company. recently the firm invested in the development of k-w vision, a series of systems and processes that allow the use of up-to-date data and advanced analytics to drive informed decision making about k-w brands. it is 2018. the system is populated with 3 years of historical data. as brand manager for k-w’s blue laundry detergent, you are tasked to lead the brand's turnaround. use the vision platform to to develop your strategy and grow blue’s market share over the next 4 years.

Answers: 2

Answer

You know the right answer?

The 2018 income statement of Adrian Express reports sales of $20,510,000, cost of goods sold of $12,...

Questions