t Problems+ a htps//newconnect Saved pter 03 Pre-Built Problems 10 SMOLIRA GOLF
ID: 2822040 • Letter: T
Question
t Problems+ a htps//newconnect Saved pter 03 Pre-Built Problems 10 SMOLIRA GOLF CORP 2017 and 2018 Balance Sheets Assets Liabilities and Owners Equity 2017 Current assets Current liablities Cash s 24056 24,200 Accounts payable 23.284 27200 12.000 11671 10.900 15.300 25.59227200 s 62196 66700 Notes payable Other 12 548 receivable nventory 15,900 otal Long-term debt Owners: equity S 46,955 54000 s 90000 93294 Common stock and paid-n s 42000 42.000 208.936 242706 $250,936 $284 706 Total sabilegs and owners 387891 $432.000 References earnings Fixed assets Net plant and equipmen $325.695$365.300Total Total assets equity SMOUIRA GOLF CORP 2018 Income Statement O Type here to searchExplanation / Answer
Profit margin = (Net Income / Sales) x 100 = ($54,770 / $336,329) x 100 = 16.284649851% or 16.28 percent
Total asset turnover = Sales / Total assets = $336,329 / $432,000 = 0.77853935185 or 0.78 times
Equity Multiplier = Total assets / Owners' Equity = $432,000 / $284,706 = 1.51735474489 or 1.52 times
ROE as per Dupont Identity = profit margin x total asset turnover x equity multiplier = 16.284649851% x 0.77853935185 x 1.51735474489 = 19.237389% or 19.24%
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