Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 1, Problem 10BP
Determining expenses, liabilities, equity, and return on assets
Ski-Doo Company manufactures. markets. and sells snowmobiles and snowmobile equipment and accessories The average total assets for Ski-Doo is $3,000,000. In its most recent year. Ski-Doo reported net income of $201,000 on revenues of $1,400,000.
Required
- 1. What is Ski-Doo Company’s return on assets?
- 2. Does return on assets seem satisfactory- for Ski-Doo given that its competitors average a 9.5% return on assets?
- 3. What are the total expenses for Ski-Doo Company in its most recent year?
Check (3) $1,199,000
- 4. What is the average total amount of liabilities plus equity for Ski-Doo Company?
(4) $3,000,000
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Edison Co. reported the following for the current year:
Net sales
Cost of goods sold
Net income
Beginning balance of total assets
Ending balance of total assets
$80,000
$56,000
$16,000
$60,000
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Compute (a) profit margin and (b) return on total assets.
Complete this question by entering your answers in the tabs below.
Profit Margin
Ratio
Return On
Total Assets
Compute the return on total assets.
Return On Total Assets
Choose Denominator:
Choose Numerator:
Return On Total Assets
Return on total assets
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Chapter 1 Solutions
Principles of Financial Accounting.
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