Utilizing the following information on the Smithwick Company, Compute the firms return on equity. Income Statement (000s)

Question:

Utilizing the following information on the Smithwick Company, Compute the firm€™s return on equity.

Income Statement
(000s)
Net sales $ 12,750
Cost of sales 7,650
Gross margin $ 5,100
Operating expenses 3,165
Earnings before interest and taxes 1,935
Interest 235
Earnings before tax $ 1,700
Taxes (40%) 680
Earnings after tax $1,020

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting in an Economic Context

ISBN: 978-1119444367

10th edition

Authors: Jamie Pratt

See More Books

Question Posted: May 20, 2013 06:31 AM

See More Questions

The Ethan Company provides you with the following information on December 31, 2015 as it prepares to close its books for the year Accounts Receivable Balance (before write...
The ABC Co. earned $10 million before interest and taxes on revenue of $60 million last year. Investment in fixed capital was $12 million, and depreciation was $8 million. Working capital investment...
The state vehicle inspection bureau provided the following information on the percentage of cars that fail an annual vehicle inspection due to having faulty lights: 15% of all cars have one faulty...
In Problems 5994, solve each inequality. Express your answer using set notation or interval notation. Graph the solution set. 2x2 3 + x
Write structural formulas for the following compounds: a. P-chlorostyrene b. 2,3,5-trifluoroaniline c. O-chlorophenol d. Allylbenzene e. P-isopropylphenol f. P-dimethylbenzene g. 1,3-diphenylhexane...
The following production data were taken from the records of the finishing department for June: Line Item Description Amount Inventory in process, June 1 , 2 5 % completed 3 8 0 units Transferred to...
List and discuss the major information security and privacy threats to organizations.
Three years ago American Insulation Corporation issued 10 percent, $800,000, 10-year bonds for $770,000. Debt issue costs were $3,000. American Insulation exercised its call privilege and retired the...
In what ways do organizations navigate the tension between fostering innovation and maintaining operational stability during periods of transformative change ? Explain
Murphy, Inc., purchased a new inventory item two times during the month of April, as follows: Apr. 5 100 units @ $5.00 Apr. 15 100 units @ $5.05 a. What is the amount of the ending inventory of this...
Lone Star Sales & Service acquired a new machine that cost $42,000 in early 2003. The machine is expected to have a five-year useful life and is estimated to have a salvage value of $7,000 at the end...
Galaxy Corporation is holding a stockholders meeting next month. Mr. Starr is the president of the company and has the support of the existing board of directors. All nine members of the board are up...
Information for Jager Company in 2017 follows: Total net credit sales..............................................................................$3,300,000 Accounts receivable at December...
Tokyo Steel's common stock currently is selling for $56 per share. the most recent dividend paid to common stockholders was $2.40, and this dividend is expected to grow at a rate of 5 percent for as...
You want to invest 100,000 and wanttomaximize your expectedreturn.The marketportfolio hasanexpected return of 7% and a standard deviation of 12%.And the risk-free treasuries rate is 5%. To maximize...
Watch video "When Americans fought for Mexico: St Patrick's Battalion." On youtube and Respond to the question in a full (1) one-page or more essay, with as much detail as possible to support your...
If you have a deposit plan for 5 years to deposit $455 at the end of each year, how much money would be there after 5 years if the interest rate is 6.64% compounded quarterly? (Do not use the...
I'm evaluating a stock for purchase. my estimation is that the firm will pay the following dividends in the coming years: year 1: $2.00 year 2: $2.50 and year 3: $3.00. After the 3rd year the...
Consider the diffusion equation that the scheme is stable. Show also that the implicit scheme is unconditionally stable. t = 82 u Let u ||
Teasdale Inc. manufactures and sells commercial and residential security equipment. The comparative unclassified balance sheets for December 31, 2015 and 2014 are provided below. Selected missing...
The machinery account balance at 1 July 2021 was $90 720, the accumulated depreciation $27 210 and the annual depreciation expense for the coming year $10 884. Prepare: the monthly standing journal...
Ludwick Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2010. Annual rental payments of $40,000 are to be made at the beginning of each lease year...
On January 1, 2011, Cage Company contracts to lease equipment for 5 years, agreeing to make a payment of $137,899 (including the executory costs of $6,000) at the beginning of each year, starting...
Shapiro Inc. was incorporated in 2010 to operate as a computer software service firm with an accounting fiscal year ending August 31. Shapiro's primary product is a sophisticated online...
1 B C Use Excel to journalize the adjusting entries. Use the blue shaded areas for inputs. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from...
A. Make each pair of radicals similar by reducing the radicand. 1. 2,8 2. 3.24 3. 45,125 4. 3,96 5. 27.75 6. 48,12 7. 28,63 8. 4/32,1/162 9. 40,135 10. 8.200 B. Referring to each pair in letter A, do...
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash...

Utilizing the following information on the Smithwick Company, Compute the firms return on equity. Income Statement (000s)

Question:

Balance Sheet (000s) Current assets S 1,500 Current liabilities S 910 7000 Long tem labilities S 8,500 Fixed assets 1,200 Common stock at par) Paid in capital Retained earnings 2,000 1,000 3.390 S 8,500

Step by Step Answer:

Calculation of Rate of return on Shareholders Equity R...View the full answer

Financial Accounting in an Economic Context

Students also viewed these Accounting questions