1 18rohto s profit ar net as of the last five years is as IOws: Net Assets Profit P 4,000,000 3,200,000 3,000,000 019 P20,200,000 018 017 016 015 20,000,000 18,500,000 3,800,000 17,900,000 2,500,000 15,600,000 is agreed that Niagara is willing to pay for goodwill measured by capitalizing at 40% excess o e average profits over normal return on net assets. The normal return on average net assets e industry to which Toronto belongs is 10%.
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- The following condensed profit or loss statement of Sasume Corporation is presented for two years ended December 31, 2024 and 2023: 2024 2023 Net sales 10,000,000 9,000,000 Cost of sales 6,000,000 6,000,000 Gross profit 4,000,000 3,000,000 Operating expenses 2,500,000 2,000,000 Gain on sale of a component 900,000 -- Total 2,400,000 1,000,000 Income tax expense 720,000 300,000 Net income 1,680,000 700,000 On January 1, 2024, Sasume entered into an agreement to sell for P2,000,000 one of its separate operating divisions. The sale resulted in a gain on disposition of P900,000 on November 14, 2024, and qualifies as a discontinued component. This division’s contribution to Sasume’s reported income before income taxes for each year was as follows 2024 P700,000 loss 2023 P400,000 loss Assume an income tax rate of 30%. In preparation of a revised comparative…Swifty Incorporated had average total assets in 2025 of $6343000. It reported sales for of $8209000 that year. Average liabilities for the year were $5187000. Net income for the year was $964136. What is Swifty' return on assets for 2025? O 15.20% 18.59% O 11.74% 6.60%Frappe Company is acquiring Frappuccino Corporation on January 1, 2020. The cumulative earnings of Frappuccino from 2015 to 2019 amounted to P7,200,000. On January 1, 2020, the assets and liabilities of Frappuccino at appraised values are P10,350,000 and P6,650,000, respectively. The normal return in Frappuccino 's industry is 20%. Goodwill is computed by capitalizing at 25% average earnings in excess of normal return based on appraised value of net assets. What is the amount paid by Frappe in the acquisition of Frappuccino Corporation?
- Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars) 2020 2019 Sales $ 12,000 $ 11,000 Operating costs excluding depreciation 10,522 9,674 Depreciation and amortization 410 370 Earnings before interest and taxes $ 1,068 $ 956 Less interest 180 100 Pre-tax income $ 888 $ 856 Taxes (25%) 222 214 Net income available to common stockholders $ 666 $ 642 Common dividends $ 203 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 650 $ 600 Short-term investments 210 200 Accounts receivable 2,750 2,500 Inventories 1,950 1,800 Total current assets $ 5,560 $ 5,100 Net plant and equipment 3,850 3,500 Total assets $ 9,410 $ 8,600 Liabilities and Equity Accounts payable $ 1,300 $ 1,200 Accruals 650 600 Notes…Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars) 2020 2019 Sales $ 12,000 $ 11,000 Operating costs excluding depreciation 10,522 9,674 Depreciation and amortization 410 370 Earnings before interest and taxes $ 1,068 $ 956 Less interest 180 100 Pre-tax income $ 888 $ 856 Taxes (25%) 222 214 Net income available to common stockholders $ 666 $ 642 Common dividends $ 203 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 650 $ 600 Short-term investments 210 200 Accounts receivable 2,750 2,500 Inventories 1,950 1,800 Total current assets $ 5,560 $ 5,100 Net plant and equipment 3,850 3,500 Total assets $ 9,410 $ 8,600 Liabilities and Equity Accounts payable $ 1,300 $ 1,200 Accruals 650 600 Notes…Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500Total Assets in 2021 110,000Current Liabilities 40,000Total Assets in 2020 90,000Net Profit 12,000Shareholders' Equity 65,000 Select one:a. 0.12b. 0.10c. 0.18d. 0.13
- Selected 2020 balance sheet and income statement information for Vkusno & Tochka Corporation and Tasty Treats, Inc., follows. ($ millions) Vkusno & Tochka Tasty Treats Sales Revenue Interest Expense Net Income Average Total Assets $96,040 $6,090 $27,786 $294,060 28,260 2,715 5,309 32,549 a. Compute the return on assets (ROA) for each company. Use the 25% statutory tax rate. Note: Round your answers to the nearest million dollars. Numerator ($ millions) + Denominator ($ millions) 0+ $ 0+$ Vkusno & Tochka's ROA $ Tasty Treats' ROA $ Vkusno & Tochka's PM $ Tasty Treats' PM Vkusno & Tochka's ROA Tasty Treats' ROA b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. • Note: Round your answers to the nearest million dollars. $ Vkusno & Tochka's AT $ Tasty Treats' AT $ Numerator ($ millions) + Denominator ($ millions) 0$ 05 0+$ 0+ $ PM X % x % X 0 AT c. Discuss any differences in these ratios for each company. has the lower ROA ratio. has the higher PM ratio.…For 2020, Sheridan Company reports beginning of the year total assets of $892000, end of the year total assets of $1170000, net sales of $1100000, and net income of $200000.Sheridan’s 2020 asset turnover is 0.94 times. 0.25 times. 0.27 times. 1.07 times.Suppose in its 2022 annual report that McDonald's Corporation reports beginning total assets of $29.00 billion, ending total assets of $31.00 billion, net sales of $22.20 billion, and net income of $4.26 billion. (a) Compute McDonald's return on assets. (Round return on assets to 2 decimal places, e.g. 5.12%.) McDonald's return on assets % (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12.) McDonald's asset turnover times
- Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $ 2,500.0 $ 2,000.0 Operating costs excluding depreciation and amortization 1,938.0 1,700.0 EBITDA $ 562.0 $ 300.0 Depreciation and amortization 62.0 54.0 Earnings before interest and taxes (EBIT) $ 500.0 $ 246.0 Interest 55.0 44.0 Earnings before taxes (EBT) $ 445.0 $ 202.0 Taxes (25%) 178.0 80.8 Net income $ 267.0 $ 121.2 Common dividends $ 240.3 $ 97.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents $ 36.0 $ 30.0 Accounts receivable 375.0 300.0 Inventories 468.0 360.0 Total current assets $ 879.0 $ 690.0 Net plant and equipment 621.0 540.0 Total assets $ 1,500.0 $ 1,230.0 Liabilities and Equity Accounts payable $ 250.0 $ 200.0 Accruals 75.0…What amount should Dysabel report as Cost of Sales in its 2020 consolidated income statement? a) 1,012,5000 b.) 918,000 c.) 675,000 d.) 580,500The statement of financial position as of December 31, 2020, for Taube Corporation follows: (all amounts in thousands) Assets Liabilities and Shareholders' Equity Current assets $62,000 Current liabilities $22,000 Non-current assets 95,000 Long-term liabilities 47,000 Shareholders' equity 88,000 Total liabilities and Total assets $157,000 shareholders' equity $157,000 The company's management is evaluating a couple of options to finance the acquisition of new equipment with a cost of $37 million. X Your answer is incorrect. Taube has a cash balance of $21 million as of December 31, 2020. Determine the debt to equity ratio and net debt as a percentage of total capitalization ratio. Assume that only the company's long-term liabilities are interest bearing. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity 0,78 :1 Net Debt as a Percentage of Total Capitalization 2.87 :1 eTextbook and Media X Your answer is incorrect. Taube is considering borrowing $37 million by taking out a…