Calculate ROA and ROE for Kiwi Fruit and interpret these ratios. Amounts are in thousands of dollars
Question:
Calculate ROA and ROE for Kiwi Fruit and interpret these ratios.
Amounts are in thousands of dollars (except number of shares and price per share):
Transcribed Image Text:
Klwl Frult Company Balance Sheet $ 550 Cash and equivalents Operating assets 620 2,900 Property, plant, and equlpment Other assets 110 Total assets $4,180 Current liabilities $ 950 Long-term debt 1,340 120 Other llabilitles Total llabilitles $2,410 Pald In capital $ 340 Retalned earnings 1,430 Total equity $1,770 Total labilities and equity $4.180 Klwi Frult Company Income Statement $ 8,400 Net sales Cost of goods sold (6,200) $ 2,200 Gross profit Operating expense (1,090) $ 1,110 Operating Income Other Income 105 Net Interest expense (200) $ 1,015 Pretax Income Income tax (305) Net Income 710 Earnings per share $ 1.78 Shares outstanding 400,000 Recent price $43.00 Klwl Frult Company Cash Flow Statement $ 710 Net Income Depreclation and amortization 205 Changes In operating assets (105) Changes In current llabilities (180) Operating cash flow $ 205 Net additions to propertles Changes In other assets (80) Investing cash flow 125 $ (250) Issuance/redemption of long-term debt Dvidends pald (300) $ (550) Financing cash flow Net cash Increase $ 205
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
Return on assets ROA gives an ideaas to how efficientmanagement isat using its assets to gen...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Accounting questions
-
The following table reports salaries, in thousands of dollars per year, for executives in three job types and three locations. Conduct a two-way ANOVA on these data. 1, 0, 3, 185 27 77765687 923 =455...
-
An insurance companys monthly claims in thousands of dollars are modeled by a continuous positive random variable X whose probability function is proportional to 1 x 4 where x 0 Calculate the...
-
The following matrix shows the costs in thousands of dollars for assigning Individuals A, B, C, and D to Jobs 1, 2, 3, and 4. Solve the problem showing your final assignments in order to minimize...
-
Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. a. Draw a diagram showing Sparkles demand curve, marginal-revenue curve, average total- cost curve, and...
-
Sketch the reciprocal spiral given by r = c/. For c > 0, does it unwind in the clockwise direction?
-
Jamie Draperies manufactures curtains. To complete a curtain, Jamie requires the following inputs: During the second quarter, Jamie Draperies made 1,500 curtains and used 14,000 square yards of...
-
Alignment of a motor with sleeve bearings is critical to long life. The following true/false questions are all related to the alignment of a sleeve bearing motor: a. True or False: An electric motor...
-
There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this property, approached John to discuss the idea of selling it to him. John is interested. Ellen knows that...
-
Door Dash Economic Growth and Stability Identify the general economic conditions of the country, region, state, or local area where the firm's target customers are located. How are these economic...
-
Suppose you are to design a LAN for a company that has 100 employees, each given a desktop computer attached to the LAN. What should be the data rate of the LAN if the typical use of the LAN is shown...
-
Calculate the gross and operating margins for Kiwi Fruit. Amounts are in thousands of dollars (except number of shares and price per share): Klwl Frult Company Balance Sheet $ 550 Cash and...
-
Calculate the price-book, price-earnings, and price-cash flow ratios for Kiwi Fruit. Amounts are in thousands of dollars (except number of shares and price per share): Klwl Frult Company Balance...
-
Water witching, the practice of using the movements of a forked twig to locate underground water (or minerals), dates back over 400 years. Its first detailed description appears in Agricolas De re...
-
KL has the following capital and reserves at 31 December 20X9: $'000 Ordinary shares 300 8% irredeemable preference shares 100 Retained earnings 150 550 KL also had $200 000 10 per cent loan notes on...
-
At its January 15 meeting, the board of directors of Omega Consolidated Industries made a decision to build a new manufacturing facility in China and approved funding up to $180 million for...
-
1. When is core churn also new business? 2. Why should a marketing organization be oriented toward different types of adopters rather than specializing in different products? 3. How should...
-
The following are projections for year 0 and year 1 of a business project: Year 0 1 Revenue 100 Cost of Goods Sold 50 SG&A 30 Depreciation 10 Capital expenditure 90 40 Balance sheet (levels): ...
-
Consider the matrix formulation Y = X+ for a multiple linear regression with 44 observations and a mean function of the form E(Y) = Bo+B1X1 + 2X2 in the usual notation. In total, how many elements...
-
Identify each distribution in Problems 31-34 as skewed to the right, symmetric, or skewed to the left. If it is also a normal distribution, so state. a. b. 600 450 300 150 0 600 450 300 150 0 Mode...
-
[a] Two foam blocks, each with a charge of 19 micro coulombs (1 C = 10-6 C), are both held in place 19 cm apart in the east-west direction. A foam ball with a charge 49 C is placed 55 cm north of the...
-
a. Are there any statutes in your state specifying the conditions for modifying a custody order that was issued within your state? If so, what are they? b. Find an opinion in which a custody order...
-
A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = 4), which is expected to grow at some constant rate g throughout time. The stocks required...
-
You are considering an investment in the common stock of Keller Corp. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00). The stock has a beta equal to 0.9. The...
-
What will be the nominal rate of return on a preferred stock with a $100 par value, a stated dividend of 8 percent of par, and a current market price of? (a) $60, (b) $80, (c) $100, and (d) $140?
-
Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year is as follows: Actual manufacturing overhead Estimated...
-
$ 719,000 280,000 439,000 150,400 Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating...
-
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 22 units at $44 Sale 18 units at $62 First purchase 18...
Study smarter with the SolutionInn App