question archive Some recent financial statements for Smolira Golf Corp
Some recent financial statements for Smolira Golf Corp
Subject:FinancePrice:2.85 Bought3
Some recent financial statements for Smolira Golf Corp. follow.
The company's profit margin is _______ percent. (Use year-end figures rather than average values where appropriate. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The total asset turnover is ________ times. (Round your answer to 2 decimal places, e.g., 32.16.)
The equity multiplier is __________ times. (Round your answer to 2 decimal places, e.g., 32.16.)
Using the Du Pont Identity, the company's ROE is ___________ percent. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Profit margin = net income / sales x 100 = 40,374 / 357,290 x 100 = 11.30%
Total asset turnover is Sales/ Average total assets = 357,290 / 420,891 = 0.8488 times
The equity multiplier is Average total assets / Average Owners' Equity = 420,891 / 272,313 = 1.5456
Using the Du Pont Identity, the company's ROE is Profit margin x Total asset turnover x equity multiplier = 11.30 x 0.8488 x 1.5456 = 14.82%
