The Shepard Company balance sheet and income statement are provided below: The Shepard Company Balance Sheet...
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The Shepard Company balance sheet and income statement are provided below: The Shepard Company Balance Sheet December 31, Year 1 Assets Cash $ 40,000 Accounts receivable 52,000 Inventory 80,000 Plant and equipment, net of depreciation 280,000 Land held for future plant expansion 76,000 Total assets $ 528,000 Liabilities and Stockholders' Equity Accounts payable $ 45,000 Notes payable 58,000 Capital stock, no par 240,000 Retained earnings 185,000 Total liabilities and stockholders' equity $ 528,000 The Shepard Company Income Statement For the Year Ended December 31, Year 1 Sales $ 330,000 Less variable costs: Manufacturing 68,000 Selling and administrative 48,000 Selling and administrative 56,000 Net income $ 90,000 Required: 1) Compute the margin, turnover, and return on investment for The Shepard Company. 2) What is the advantage of expanding the ROI formula to measure margin and turnover separately? The Shepard Company balance sheet and income statement are provided below: The Shepard Company Balance Sheet December 31, Year 1 Assets Cash $ 40,000 Accounts receivable 52,000 Inventory 80,000 Plant and equipment, net of depreciation 280,000 Land held for future plant expansion 76,000 Total assets $ 528,000 Liabilities and Stockholders' Equity Accounts payable $ 45,000 Notes payable 58,000 Capital stock, no par 240,000 Retained earnings 185,000 Total liabilities and stockholders' equity $ 528,000 The Shepard Company Income Statement For the Year Ended December 31, Year 1 Sales $ 330,000 Less variable costs: Manufacturing 68,000 Selling and administrative 48,000 Selling and administrative 56,000 Net income $ 90,000 Required: 1) Compute the margin, turnover, and return on investment for The Shepard Company. 2) What is the advantage of expanding the ROI formula to measure margin and turnover separately?
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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