Required:

(a) Firm D has net income of $109,500, sales of $2,342,000, and average total assets of $1,407,000. Calculate the firm’s margin, turnover, and ROI. (Omit the “%” sign in your response.)

Margin %

Turnover

ROI %

Turnover $

Average total assets

Net income $

Sales $

Margin %

Required:

(a)

Calculate Carpenter Associates’s margin and net income. (Round your margin percentage to 1 decimal place and use the same for the calculation of net income. Enter your answer in dollars, not millions of dollars. Omit the “$” and “%” signs in your response.)

Margin %

Net income $

(b) Calculate Carpenter Associates’s return on equity. (Round your answer to the nearest whole percent. Omit the “%” sign in your response.)

ROE %

Required:

(a)

Calculate the firm’s current assets and working capital at November 30. (Omit the “$” sign in your response.)

Current assets $

Working capital $

(b)

Assume that management paid $17,500 of accounts payable on November 29. Calculate the current ratio and working capital at November 30 as if the November 29 payment had not been made. (Round your current ratio answer to two decimal places. Omit the “$” sign in your response.)

Working capital $

Current ratio

Attachment Preview:

(a)

Firm D has net income of $109,500, sales of $2,342,000, and average total assets

of $1,407,000. Calculate the firm’s margin, turnover, and ROI. (Omit the “%” sign in your

response.)

Margin

%

Turnover

ROI %

(b)

Firm E has net income of $162,000, sales of $2,620,000, and ROI of 13%.

Calculate the firm’s turnover and average total assets. (Omit the “$” sign in your

response.)

Turnover

$

Average total assets

(c)

Firm F has ROI of 12.6%, average total assets of $1,754,159, and turnover of 1.3.

Calculate the firm’s sales, margin, and net income. (Round your answers to the nearest

whole numbers. Omit the “$” and “%” signs in your response.)

Net income $

Sales $

Margin

%

2. For the year ended December 31, 2010 ,Carpenter Associates, earned an ROI of 11%.

Sales for the year were $17 million, and average asset turnover was 2.4. Average owners’

equity was $3.3 million.

Required:

(a)

Calculate Carpenter Associates’s margin and net income. (Round your margin percentage

to 1 decimal place and use the same for the calculation of net income. Enter your answer

in dollars, not millions of dollars. Omit the “$” and “%” signs in your response.)

Margin

%

Net income $

(b)

Calculate Carpenter Associates’s return on equity. (Round your answer to the

nearest whole percent. Omit the “%” sign in your response.)

ROE %

3.Pacific Industries, had current liabilities at November 30 of $68,900. The firm’s current

ratio at that date was 1.7.

Required:

(a)

Calculate the firm’s current assets and working capital at November 30. (Omit the “$”

sign in your response.)

Current assets

Working capital

$

$

(b)

Assume that management paid $17,500 of accounts payable on November 29. Calculate

the current ratio and working capital at November 30 as if the November 29 payment had

not been made. (Round your current ratio answer to two decimal places. Omit the “$”

sign in your response.)

Working capital

Current ratio

$