What is mr smiths return on assets

Assignment Help Accounting Basics

Reference no: EM131920617

Problem

Mr. Smith Corp is in the business of filing parts used in fixing automobiles. Mr. Smith Corp has gross profit of 180.000 (gross margin rate is equal to 30%). Total assets at the beginning of the year were 875.000, and 980.000 at the end of the year. In addition to sates revenue, Mr. Smith earned 20,000 in rent revenue, 35.000 in interest revenue, and paid 6,000 in interest expense. Operating expense for the year total 96.000. Assume Mr. Smith has a tax rate of 24.81% (round tax expense the thousand). What is Mr. Smith's Return on Assets?

Reference no: EM131920617

Questions Cloud

Explain why a marketing audit might be desirable : Explain why a marketing audit might be desirable-even in a well-run company. Who or what kind of an organization would be best to conduct a marketing audit?

Obtain forecasts for periods 6 through 10 : The initial estimate of trend is based on the net change of 30 for the three periods from 1 to 4, for an average of +10 units.

What is the amount of the monthly payment for wiggley : Mr. Wiggley wants to buy a new house. It will cost $178,000. What is the amount of the monthly payment if he intends to pay the house off in 25 years?

What would happen to total profits : What would happen to total profits if Tapco stopped selling Product A but continued to sell 4,000 units of Product B?

What is mr smiths return on assets : Mr. Smith Corp is in the business of filing parts used in fixing automobiles. Mr. Smith Corp has gross profit of 180.000. What is Mr. Smith's Return on Assets?

Forecast september sales volume : Exponential smoothing with a smoothing constant equal to .20, assuming a March forecast of 17(000).

What products are being offered by a shop : What products are being offered by a shop that specializes in bicycles? By a travel agent? By a supermarket? By a new car dealer?

What amount of cash dividends payable to common stockholders : Mozart & Company paid cash dividends totaling $150,000 in 2013 and $75,000 in 2014. What is the amount of cash dividends payable to common stockholders in 2015?

How lack of physical good affect efforts to promote service : Consumer services tend to be intangible, and goods tend to be tangible. Use an example to explain how the lack of a physical good in a pure service might.

User Account

All Pages