The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands): Required For each year:

Question:

The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands):

2018 2019 2020 Sales Average total assets Average shareholders' equity Net income Gross profit $28,274 $25,704 33,201 20

Required

For each year:

a. Calculate the return on equity. Comment on the trend in this ratio.

b. Calculate the return on assets. Comment on the trend in this ratio.

c. Calculate the company’s gross margin. Comment on the trend in this ratio.

d. Comment on the profitability of Gloucester Estates Wines Ltd.

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Related Book For answer-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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Question Posted: Jul 26, 2019 07:59 AM

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The following financial information relates to Gloucester Estates Wines Ltd. (amounts in thousands): Required For each year:

Question:

2018 2019 2020 Sales Average total assets Average shareholders' equity Net income Gross profit $28,274 $25,704 33,201 20,530 1,001 12,852 $31,102 49,226 24,841 2,560 44,751 22,583 2,399 17,973 16,047

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a Return on Equity ROE 2018 1001 20530 49 2019 2399 22583 106 2020 2560 24841 103 Gloucester Estate ...View the full answer

Understanding Financial Accounting

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