US Corporation Balance sheet 2015 (In Millions) Assets Cuurrent Assets Cash $ 10
ID: 2530967 • Letter: U
Question
US Corporation
Balance sheet 2015
(In Millions)
Assets
Cuurrent Assets
Cash $ 104
Account Receivable $455
inventory $ 553
total assets $ $1,112
Fixed Assets
Net Plant and Equipment $ 1,644
Liabilities and Capital
current liabilities $232
account payable $ 196
total liabilities $ 428
Long Term Debt $408
Ownership equity
common stock $600
retained earnings $1,320
Total Liabilities and Capital $2756
US Corporation
Income Statement 2015
(In millions)
Net Sales $ 1500
Cost of Goods Sold $750
Operating expenses $ 625
Net profit before taxes $ 125
Taxes $ 25
Net Profit after tax $ 100
Based the information given above Calculate
1. Net profit margin (1.5 points)
2. Asset Turnover (1.5 points)
3. Return on Assets (1.5 points)
4. Gross profit (1.5 points)
5. Gross profit margin (1 point)
6. Operating expense % (1.5 points)
7. Inventory turnover (1.5 points)
Explanation / Answer
Answer:-1)-Net profit margin =(Net profit/Net sales)*100
=($100/$1500)*100 =6.67%
2)- Asset turnover ratio =Turnover/Average total assets
=$1500/$2756 =.54 Times
3)-Return on assets =($100/$2756)*100 =3.63%
4)-Gross profit =Net sales-Cost of goods sold
=$1500-$750 =$750
5)-Gross profit margin =(Gross profit/Net sales)*10
=($750/$1500)*100 =50%
6)- Operating expenses % =($625/$1500)*100
=41.67%
7)-Inventory turnover = Inventory turnover ratio= Cost of goods sold/Average inventory
= $750/$753
= .996 times
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