Case Link Question (5) Directions: Click the Case Link displayed above and use the information provided in Muebles Mexicanos, Part B, to answer this question: What was the company's pre-tax return on assets in 20Y37 23.30% 41.00% 48.70% 108.90% Muebles Mexicanos Part B Muebles Mexicanos Statements of Financial Position (in $000s) As At December 31: 20Y3 20Y2 20Y1 $ $ $ 42 ASSETS Current assets Cash Accounts receivable Inventory Total current assets 51 135 317 503 62 44 210 316 28 173 243 Fixed assets Gross fixed assets Less: Accumulated depreciation Net fixed assets 202 115 87 157 82 75 138 73 65 Other noncurrent assets 7 2 6 TOTAL ASSETS $ 597 $ 393 $ 314 LIABILITIES AND EQUITY Current liabilities Other noncurrent assets 7 2 2 6 TOTAL ASSETS $ 597 $ 393 $ 314 $ $ $ LIABILITIES AND EQUITY Current liabilities Short-term debt Current portion-LTD Accounts payable Accrued expenses Other current liabilities Total current liabilities 177 4 104 76 7 368 103 4 65 42 5 219 85 4 51 34 3 177 Long-term debt Total liabilities 8 227 12 189 372 Owners' equity 225 166 125 597 TOTAL LIABILITIES AND EQUITY $ $ 314 393 training moodys.com Muebles Mexicanos Part B Muebles Mexicanos Statements of Comprehensive Income (in $000s) Years Ended December 31: 20Y3 20Y2 2011 $ $ Sales Cost of goods sold Gross profit 2,722 1,068 1,654 1,500 608 892 1,281 512 769 Selling general, and administrative expense Depreciation expense Total SG&A expenses 1,307 40 1,347 690 24 714 584 23 607 Interest expense Loss on sale of fixed assets Other expenses Income before taxes 39 8 15 245 23 0 6 149 21 0 0 141 106 Taxes 62 68 $ 139 Net Income $ 81 79 40 80 40 Owners' drawings - $ 41 59 $ Retained earnings 39 training moodys.com $ 139 40 8 OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided (used) by operating activities Depreciation Loss on disposition of fixed assets Changes in: Accounts receivable Inventory Other noncurrent assets Accounts payable Accruals Other current liabilities Net cash provided by (used in) operating activities INVESTING ACTIVITIES (Purchases) of fixed assets Proceeds of sale of fixed assets Net cash provided by (used in) investing activities FINANCING ACTIVITIES Proceeds from short-term borrowing (Payments) on long term debt Cash dividends (paid) Net cash provided by (used in) financing activities (91) (107) (5) 39 34 2 59 $ $ (80) 20 $ (60) $ 74 $ (80) (10) Increase (Decrease) In cash and cash equivalents $ (11) Beginning cash and cash equivalents $ 62 Ending cash and cash equivalents $ 51