Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. comment on the companys performance under these me

Comment on the companys performance under these measurements. Explain why the return on assets and...

80.2K

Verified Solution

Question

Accounting

image

Comment on the companys performance under these measurements. Explain why the return on assets and the return on equity are so different.

Background and Content: Your company has sent you to MIT to take the unit BB104 Introductory Accounting so that after completion of the unit you can analyse the company financial statements and prepare a report for them. Shown below is selected data from the financial statements of Duncan & Sons, a retail furniture store.e From the balance sheet: Cash $ 30,000 Accounts Receivable 150,000 Inventory 200,000 Plant assets 500,000 Current liabilities 150,000 Total stockholders' equity 300,000 Total Assets 880,000 From the income statement: Net sales $1,500,000 Cost of goods sold 1,080,000 Operating expenses 315,000 Interest expense 84,000 Income taxes expense 6,000 Net Income after tax 15,000 e From the statement of cash flows: Net cash provided by operating activities (including interest paid of $79,000) $40,000 Net cash used in investing activities ($46,000) Financing activities: Amounts borrowed $50,000 Repayments (14,000) Dividends paid (20,000) Net cash provided by Financing activities 16,000 Net increase in cash during the year $ 10,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students