80.2K

Verified Solution

Link Copied!

Amounts are in thousands of dollars (except number of shares and price per share):

Kiwi Fruit Company Balance Sheet
Cash and equivalents	$390
Operating assets	840
Property, plant, and equipment	3,600
Other assets	205
Total assets	$5,035
Current liabilities	$1,100
Long-term debt	1,725
Other liabilities	215
Total liabilities	$3,040
Paid in capital	$435
Retained earnings	1,560
Total equity	$1,995
Total liabilities and equity	$5,035

Kiwi Fruit Company Income Statement
Net sales	$8,700
Cost of goods sold	7,100
Gross profit	$1,600
Operating expense	520
Operating income	1,080
Other income	200
Net interest expense	200
Pretax income	$1,080
Income tax	290
Net income	$790
Earnings per share	$2.00
Shares outstanding	395,000
Recent price	$29.00

Kiwi Fruit Company Cash Flow Statement
Net income	$790
Depreciation and amortization	204
Increase in operating assets	100
Decrease in current liabilities	120
Operating cash flow	$774
Net (purchase) sale of property	$240
Increase in other assets	81
Investing cash flow	$159
Net (redemption) issuance of LTD	$207
Dividends paid	198
Financing cash flow	$405
Net cash increase	$528

Calculate ROA and ROE for Kiwi Fruit.

Answer & Explanation Solved by verified expert

See Answer