Calculate the return on assets and dividend payout

Assignment Help Financial Accounting
Reference no: EM131266412

Maggie's Skunk Removal Corp.'s 2012 income statement listed net sales of $13.9 million, EBIT of $7.0 million, net income available to common stockholders of $4.6 million, and common stock dividends of $2.6 million. The 2012 year-end balance sheet listed total assets of $53.9 million and common stockholders' equity of $22.4 million with 2.0 million shares outstanding.

1. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit margin %

2. Calculate the basic earnings power. (Round your answer to 2 decimal places.) Basic earnings power %

3. Calculate the return on assets. (Round your answer to 2 decimal places.) Return on assets %

4. Calculate the return on equity. (Round your answer to 2 decimal places.) Return on equity %

5. Calculate the dividend payout. (Round your answer to 2 decimal places.) Dividend payout %

Reference no: EM131266412

Questions Cloud

Calculate the cost of goods sold and the interest expense : You have been given the following information for Moore’s HoneyBee Corp. Calculate the cost of goods sold and the interest expense for Moore’s HoneyBee Corp.
Calculate the income available to pay the asset funders : You are considering a stock investment in one of two firms (AllDebt, Inc., and AllEquity, Inc.), both of which operate in the same industry and have identical operating income of $7.00 million. Calculate the income available to pay the asset funders ..
Book and market values of the firm stockholders equity : Ava’s SpinBall Corp. lists fixed assets of $22 million on its balance sheet. The firm’s fixed assets have recently been appraised at $36 million. Current liabilities’ book and market values stand at $5 million and the firm’s book and market values of..
Calculate the price-earnings ratio and market-to-book ratio : You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $13.20 million and common stock dividends of $1.80 million. What is Roxie's Bed & Breakfas..
Calculate the return on assets and dividend payout : Maggie's Skunk Removal Corp.'s 2012 income statement listed net sales of $13.9 million, EBIT of $7.0 million, net income available to common stockholders of $4.6 million, and common stock dividends of $2.6 million. Calculate the return on assets. Cal..
Calculate goodman bees cash ratio and current ratio : You are evaluating the balance sheet for Goodman’s Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $260,000; accounts receivable = $1,400,000; inventory = $2,300,000; accrued wages and taxes ..
Account for the arrangement as capital lease : On January 1, year 1, Frost Co. entered into a two-year lease agreement with Ananz Co. to lease 10 new computers. The lease term begins on January 1, year 1 and ends on December 31, year 2. The present value of the minimum lease payments is $13,000. ..
What is the payback period for the new machine : A company is considering the purchase of a new machine for $54,000. Management predicts that the machine can produce sales of $16,600 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhe..
Decrease in net income by replacing the current machine : Granfield Company has a piece of manufacturing equipment with a book value of $41,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What was the contribution margin percentage

Juniper had revenues of $460,000 in March. Fixed costs in March were $284,240 and profit was $28,560. What was the contribution margin percentage? What monthly sales volume (in dollars) would be needed to break-even?

  How much money could the company afford to spend

A company could begin saving $5,400 per month beginning 5 months from now if they install a new machine today. How much money could the company afford to spend now to buy this machine at an (nominal) interest rate of 15% per year, compounded monthly,..

  What is the compensation expense at end of the second year

On January 1, the company granted 150,000 stock options to key employees. Each option allows an employee to buy one share of $1 par common stock for $25, which was the market price of the shares on the grant date of January 1. In order to be able to ..

  Prepare statement of activities for the year ended december

Prepare a statement of activities for the year ended December 31, 2014. Prepare a statement of financial position for the year ended December 31, 2014. Prepare a statement of cash flows for the year ended December 31, 2014.

  What is butchers warranty expense for year four

Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for a refund of the sales price in the 2-year warranty period. There were $6,000 of warranty obligations paid in cash during Y..

  Allocated to the basis of the building

On March 14 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,475,500; $328,000 was allocated to the basis of the land and the remaining $1,147,500 was allocated ..

  What data may be considered as fraud risk factors

What data may be considered as fraud risk factors

  Which form of business organization might best suit

Which form of business organization might best suit the following?

  What is the growth rate in sales for the past three years

Budgets are used for planning and control. Discuss how you can use the information derived for these two purposes?

  Prepare a statement of cost of goods sold

Prepare a statement of cost of goods manufactured.-  Prepare a statement of cost of goods sold.-  What was total prime cost for 2008? Total conversion cost?

  What is the direct material price variance

The standard cost of Chocolate Attack Brownies manufactured by Jordan and Taylor includes 8 ounces of cocoa powder at $12.00 per pound. During June, 27,000 pounds of cocoa powder are purchased at a cost of $11.80 per pound and used to produce 53,500 ..

  Computation of production cost

Computation of production cost with given data and sea Company reports the following information regarding its production cost.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd