Jayann Madrazo

HOMEWORK 1

1
a 26.66%

Sales 1,922,000
Sales 3.10 x 620,000

ROA
ROA 0.2666

b 32.86%

Net income = 137992

ROE = 137,992 / 420,000

a Return on assets
Operating profit (after-tax interest + net income)
b margin
Sales-to-assets (after-tax interest + net income)
c ratio
Inventory sales / assets
d turnover
e Debt-equity ratio liabilities / equity
f Cuttent ratio Current assets / Current liabiliti
g Quick ratio Cash + marketable securities + re

a Sales-to-assets FEDERAL STORES

ratio 1.74
Operating
profit margin 35.85%

ROA 62.38%

b
Merged firm
 Sales-to-assets
ratio 1.22
Operating
profit margin 64.96

ROA 79.25

a Debt to equity
ratio 0.77
Net working
b1 capital
Total long term 148
capital 686
long term
b2 capital 0.36

5 Profit margin, Total asset turnover and Equity multiplier

6 Roe = ROA x (1+ Debt - Equity Ratio)

7 9.10%
 (after-tax interest + net income) = 0.0860 / 165,292
(after-tax interest + net income) = 1,922,000

or 26.66%

(0.65 x 2,228 + 13,509) / 199,125 7.51%

(0.65 x 2,228 + 13,509) / 500,393 2.99%
500,393 / 199,125 2.51%
373,446 / 43,096 8.67%
121,227/77,898 1.5562
57,889 / 67,028 0.864
(6,917 + 5,885) / 67,028 0.191

SARA TOGAS
1.31

90.39%

118.41%
Sales = 1,922,000
0.0860 = (after tax interest + net income) / 1,922,000
ATI + net income = 165,292

165292 /