Determine fultons sales-cost of goods sold-gross profit

Assignment Help Other Subject
Reference no: EM13336014

Liz Marett is the chief financial officer for Fulton Construction. She delivered the following comments in a recent conference call with analysts that follow the company: "20X5 was another excellent year. Net income was a record setting $10,000,000. We maintained our overall net profit on sales at the historic 10% level. This occurred despite an increase in raw material costs that lowered our gross margin to 60%. We are proud that we continue to maintain a healthy balance sheet that is free of any liablities. All of our financing continues to be provided by our common and preferred shareholders. Our beginning of year equity of $75,000,000 was sufficient to fund our capital needs, and no additional shares were issued this year. Our "5% preferred shareholders" have again received their full $2,000,000 in dividends for the year. The remaining earnings have been reinvested in the company."

(a) Use profitability ratios to determine Fulton's sales, cost of goods sold, gross profit, and net income.

(b) Calculate Futlon's return on assets and return on equity. Which is higher, and why?

Reference no: EM13336014

Questions Cloud

Calculate the wavelength of the second laser : A laser with wavelength d/8 is shining light on a double slit with slit separation 0.450 mm. What is the wavelength of the second laser
Determine the linear speed of the dragster : A dragster starts from rest and accelerates down a track. Each tire has a radius of 0.320 m and rolls without slipping. determine the linear speed of the dragster
Calculate the inventory turnover ratio : Stanley Corporation has no material problem with uncollectible accounts or obsolete inventory. All sales and purchases are on account. The company provided the following information for the year ending 20X7:
Determine the rms current in the bulb : A light bulb has a resistance of 270 . It is connected to a standard wall socket (120 V rms, 60.0 Hz). Determine the rms current in the bulb
Determine fultons sales-cost of goods sold-gross profit : Liz Marett is the chief financial officer for Fulton Construction. She delivered the following comments in a recent conference call with analysts that follow the company: "20X5 was another excellent year.
Find the capacitance of the second capacitor : A capacitor is connected across the terminals of an ac generator that has a frenquency of 440 Hz and supplies a voltage of 25 V. Find the capacitance of the second capacitor
Find force is applied to the driver by his seat belt : In a head-on collision, a car stops in 0.19s from a speed of 26m/s The driver has a mass of 63kg and is, fortunately, tightly strapped into his seat. What force is applied to the driver by his seat belt during that fraction of a second
Models of pure competition and oligopoly : Comparing the different models of pure (perfect) competition and oligopoly, what will be the effects or difference between the two in relation to:
Determine the tangential speed of the star : A star has a mass of 1.27 x 1030 kg and is moving in a circular orbit about the center of its galaxy. The radius of the orbit is 1.0 x 104light-years, Determine the tangential speed of the star

Reviews

Write a Review

Other Subject Questions & Answers

  Integrity of employees

Do you agree that an effective method of obtaining adequate system security is to rely on the integrity of employees? Why or why not? What can a company do to ensure the integrity of employees?

  Discussing about employee rights

How do privacy rights differ for private versus public employees? Why?

  Problem of dichotomy

Neither of the men in the cage was arrested. Both, in fact, were paid handsomely. How can this dichotomy be explained?

  Organizational culture and common characteristics

What is organizational culture and what are its common characteristics? What are the functional and dysfunctional effects of organizational culture?

  American psychological association

How can American Psychological Association can contribute towards increasing professional knowledge and abilities.

  Religious intolerance

What dose this mean? Cite incidences of religious intolerance in the United States (e.g., persecution of Mormons, anti-Catholic sentiment, anti-Semitism).

  Curriculum and cocurriculum-learning with hearts and minds

Some educators, both in curriculum and cocurriculum, have known intuitively that students learn with their hearts as well as their minds, in class and out of class, through thinking and feeling and through thinking about their feelings.

  Defining and redefining key terms

Discuss what do you think of Socrates' conclusion that no person knowingly does evil, and therefore, all evil is ignorance? Do you agree or disagree, and explain your answer?

  Control the spread of international arms

How effective have efforts to control the spread of international arms (including biological and chemical), especially nuclear weapons, have been in the past?

  Advantages and disadvantages of probation and parole

Identify the advantages and disadvantages of probation and parole. Describe the key problems in attempting to implement a successful re-entry program. Identify and describe the various forms of intermediate sanctions.

  Do competitive sports teach valuable life lessons to youth

In “Do Competitive Sports Teach Valuable Life Lessons to Youth?” choose either the “Yes” or “No” article. Identify the author's bias in the article you chose. How do you know this is his bias?

  Speed of sound also depends on temperature

The speed of sound also depends on temperature. Where TC = air temperature in Celsius. Concept Quiz Table 17.1 shows that the speed of sound is typically an order of magnitude larger in solids than in gases. To what can this higher value be most dire..

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