Chapter 17: Financial Statement Analysis 116. What is the rate earned on total assets for Diane Company? a. 10.0% b. 8.0% c. 0.10% d. 1.0% 117. What are the Assets Cash and short term investments 30000 Accounts receivable net 20000 from Main Menu; Earn Free Access; Upload Documents · Refer Your Friends; Earn equity $250,000 Income Statement Sales $85,000 Cost of goods sold 45,000 What is the ratio of sales to total assets for Diane Company? a.2.94 b. 1.00 c. 17 Dec 2019 ROA is shown as a percentage, and the higher the number, the more A company's total assets can easily be found on the balance sheet. means that for every dollar in assets during2017, Exxon earned 5.8 cents in profit. When the corporation issuing the bonds has the right to redeem the bonds prior to the maturity, the The numerator of the rate earned on total assets ratio is. Answer to Use this information for Kellman Company to answer the question that and the market price of common shares is $41, what is the price-earnings Using the data provided for Diane Company, what is the return on total assets? turnover ,total asset turnover. Profitability ratio is evaluate how well a company is performing by analyzing and how profit was earned relative to sales, total
Return on total assets (ROTA) is a ratio that measures a company's earnings before interest and taxes (EBIT) relative to its total net assets. It is defined as the ratio between net income and The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. At the end of the fiscal year, the balance in Factory Overhead is small. In other words, the return on assets ratio or ROA measures how efficiently a company can manage its assets to produce profits during a period. Since company assets’ sole purpose is to generate revenues and produce profits, this ratio helps both management and investors see how well the company can convert its investments in assets into profits. Earnings before interest and taxes ÷ Total assets = Return on total assets. For example, ABC International reports net profits of $100,000. This figure includes interest expense of $12,000 and income taxes of $28,000. When these two expenses are added back, the EBIT of the company is $140,000. The total assets figure for the company is $
The return on assets ratio, often called the return on total assets, is a is important to mention that average total assets is the historical cost of the assets on the balance how effectively a company can earn a return on its investment in assets. Rate earned on total assets = $155,000 / $1,445,000 = 10.7%. The balance sheets at the end of each of the first two years of operations indicate the following: Year 2 Year 1 Answer to What is the ratio of sales to total assets for Diane Company 1.00 2.94 O 0.18 0.34 D Question 6 What is the rate earned What is the rate earned on total assets for Diane Company? a. 10.0% b. 8.0% c. 0.10% d. 1.0% 117. What are the dividends per common share for Diane Company? 118. What are the dividends per common share for Diane Company? a. $0.67. b. $3.00. c. $1.50. d. $20.00 . 4. The balance sheets at the end of each of the first two years of operations indicate the following: Year 2 Year 1. Total current assets $600,000 $560,000. Total investments 60,000 40,000
In other words, the return on assets ratio or ROA measures how efficiently a company can manage its assets to produce profits during a period. Since company assets’ sole purpose is to generate revenues and produce profits, this ratio helps both management and investors see how well the company can convert its investments in assets into profits. Earnings before interest and taxes ÷ Total assets = Return on total assets. For example, ABC International reports net profits of $100,000. This figure includes interest expense of $12,000 and income taxes of $28,000. When these two expenses are added back, the EBIT of the company is $140,000. The total assets figure for the company is $ Question: The Following Information Pertains To Diane Company. Assume That All Balance Sheet Amounts Represent Both Average And Ending Balance Figures And That All Sales Were On Credit. Assets Cash And Short-term Investments $ 30,000 Accounts Receivable (net) 20,000 Inventory 15,000 Property, Plant, And Equipment 185,000 Total Assets $250,000 Liabilities And Normally the higher this ratio the better indicating the bank is earning a high interest rate or the proportion of interest earning assets (loans) to total assets is high or both of these effects. The Balance Sheets At The End Of Each Of The First Two Years Of Operations Indicate The Following: Year 2 Year 1 Total Current Assets $600,000 $560,000 Total Investments 60,000 40,000 Total Property, Plant, And Equipment 900,000 700,000 Total Current Liabilities 125,000 65,000 Total Long-term Liabilities 350,000 250,000 Preferred 9% Stock, $100 The rate earned on stockholders' equity is equal to a company's net income divided by its stockholders' equity, expressed as a percentage. For example, if the net income is $1 million and stockholders' equity is $10 million, the rate earned on stockholders' equity is equal to 100 multiplied by ($1 million divided by $10 million), or 10 percent.
Rate earned on total assets = $155,000 / $1,445,000 = 10.7%. The balance sheets at the end of each of the first two years of operations indicate the following: Year 2 Year 1 Answer to What is the ratio of sales to total assets for Diane Company 1.00 2.94 O 0.18 0.34 D Question 6 What is the rate earned What is the rate earned on total assets for Diane Company? a. 10.0% b. 8.0% c. 0.10% d. 1.0% 117. What are the dividends per common share for Diane Company? 118. What are the dividends per common share for Diane Company? a. $0.67. b. $3.00. c. $1.50. d. $20.00 . 4. The balance sheets at the end of each of the first two years of operations indicate the following: Year 2 Year 1. Total current assets $600,000 $560,000. Total investments 60,000 40,000 The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: rate earned on total assets = net income / average total assets 20,000 / 295,000 = 0.067 or 6.78%