Calculate the following financial ratios as at 31 December 201 Profitability ratios i. Net Profit margin ii. Return on assets iii. Return on equity
Calculate the following financial ratios as at 31 December 201 Profitability ratios i. Net Profit margin ii. Return on assets iii. Return on equity
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.1E
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Question
Below are the financial statements of Coco Stationary
Statement of Comprehensive Income for the Year ended 31 December 2017
$ | $ | ||
Sales | 305,830 | ||
Cost of goods sold | 210,935 | ||
Depreciation | 26,850 | ||
Earnings before interest and taxes | 68,045 | ||
Interest paid | 11,930 | ||
Taxable income | 56,115 | ||
Taxes (35%) | 19,640 | ||
Net income | 36,475 | ||
Dividends | 20,000 | ||
Retained earnings | 16,475 |
Coco Stationary
$ | |
Net plant and equipment | 260,525 |
Cash | 22,050 |
Accounts receivable | 13,850 |
Inventory | 24,650 |
Total current assets | 60,550 |
Total assets | 321,075 |
Ordinary shares | 25,000 |
Retained earnings | 167,840 |
Total owners' equity | 192,840 |
Long term debt | 85,000 |
Accounts payable | 22,850 |
Notes payable | 9,000 |
Other | 11,385 |
Total current liabilities | 43,235 |
Total liabilities after owners' equity | 321,075 |
Calculate the following financial ratios as at 31 December 201
Profitability ratios
i. Net Profit margin
ii.
iii.
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