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Intro Use the following information to answer the questions: Assets ...

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Question

Finance

Intro

Use the following information to answer the questions:

Assets Liabilities and Equity
Cash 11,000 Accounts payable 18,000
Marketable securities 2,000 Notes payable 6,000
Accounts receivable 5,000 Current liabilities 24,000
Inventory 30,000 Long-term debt 95,000
Current assets 48,000 Total liabilities 119,000
Machines 34,000 Paid-in capital 20,000
Real estate 80,000 Retained earnings 23,000
Fixed assets 114,000 Equity 43,000
Total assets 162,000 Total liab. & equity 162,000

Line item Value
Sales 81,000
- Operating expenses 66,420
- Depreciation 2,000
= EBIT 12,580
- Interest 800
= Taxable income 11,780
- Taxes 3,887
= Net income 7,893

Attempt 2/10 for 10 pts.

Part 1

What is the profit margin (aka net profit margin)?

Correct

Profit margin=Net incomeSales=7,89381,000=Profit margin=Net incomeSales=7,89381,000= 0.0974

Attempt 1/10 for 10 pts.

Part 2

What is the return on assets (aka return on total assets)?

Answer & Explanation Solved by verified expert
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