Question

Using the information provided, calculate this firm’s ROA, ROE, Gross Profit Margin, and Quick Ratio. If this firm’s WACC is 6.6% and the average firm in its industry has an ROA of 8%, is this firm earning above or below normal economic performance and above or below average accounting performance?
Net Sales .................. 6,134
Cost of Goods Sold ............. (4438)
Selling, General Admin. Expense ......... (996)
Other Expenses ................ (341)
Interest Income ................ 72
Interest Expense .............. (47)
Provision for Taxes ............. (75)
Other Income ............... 245
Net Income .................. 554
Operating Cash ............... 3,226
Accounts Receivable ............ 681
Inventories ................ 20
Other Current Assets ............ 0
Total Current Assets ............. 3,927
Gross Prop., Plant, Equip. .......... 729
Accumulated Depreciation ........... (411)
Book Value of Fixed Assets ......... 318
Goodwill ................. 0
Net Other Operating Assets ......... 916
Total Assets ................ 5,161
Net Current Liabilities ........... 1,549
Long Term Debt .............. 300
Deferred Income Taxes ............ 208
Preferred Stock ................ 0
Retained Earnings ............. 0
Common Stock ............... 3,104
Other Liabilities .............. 0
Total Liabilities and Equity .......... 5,161



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  • CreatedMay 08, 2015
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