Compute return on equity and profit margin

Assignment Help Managerial Accounting
Reference no: EM132581075

Question A. Use the following selected balance sheet and income statement data for Mattel Inc. (in $ thousands) to compute a) return on equity, b) profit margin (PM), c) asset turnover (AT), and d) financial leverage (FL) for fiscal 2016. Show that ROE = PM × AT × FL.

(in thousands)                         2016                             2015

Net sales                       $5,456,650                 $5,702,613

Operating income                619,233                  640,922

Interest expense                 95,118                      85,270

Net income                        318,022                   369,416

Total assets                       6,493,794              6,535,143

Total liabilities                      4,086,012                3,901,889

Show your calculations below.

Question B. Comment on the information provided to the managers of Mattel, Inc. Indicate how this information is used.

Reference no: EM132581075

Questions Cloud

What the company manufacturing overhead cost for the year : What The company's manufacturing overhead cost for the year was? A company uses a predetermined overhead rate based on direct labor-hours
How much is the company total contribution margin : How much is the company's total contribution margin for the quarter? Davis Inc. expects to sell 23,000 units during the next quarter at a selling price of $51
How many different weights are possible : If the pharmacist can combine these weights to create new weights, how many different weights are possible?
What is the value of the correlation coefficient : If 2 = 96 and n = 12, then what is the value of the correlation coefficient?
Compute return on equity and profit margin : Compute return on equity, profit margin (PM), asset turnover (AT), and financial leverage (FL) for fiscal 2016. Show that ROE = PM × AT × FL.
Why action will positively influence future of healthcare : Choose any scientific research topic, with relevant and reliable scholarly sources available for you to review. If your background is clinical, your focus may.
What is the probability that randomly select : What is the probability that you randomly select a black horse don't put it back, draw another black horse
How preceding items would be reported in current liabilities : Prepare the journal entries for Byrd for both 2019 and 2020. Assume that the net price method is used to account for the credit terms.
Discuss the roles of stakeholders : Write 3-4 pages regarding regulated hospitals enforcing positive nurse staff ratios, and Identify the stakeholders (use fictitious names for stakeholders).

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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