Tuesday 10 September 2013

Bethesda Mining Company reports the following balance sheet information for 2009 and 2010. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2009 and 2010 2009 2010 2009 2010 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 65,470 $ 82,487 Accounts payable $ 186,922 $ 194,611 Accounts receivable 65,281 85,639 Notes payable 82,020 133,588 Inventory 116,676 181,549 Total $ 268,942 $ 328,199 Total $ 247,427 $ 349,675 Long-term debt 231,000 167,750 Owners’ equity Common stock and paid-in surplus $ 224,000 $ 224,000 Accumulated retained earnings 182,232 219,704 Fixed assets Net plant and equipment $ 658,747 $ 589,978 Total $ 406,232 $ 443,704 Total assets $ 906,174 $ 939,653 Total liabilities and owners’ equity $ 906,174 $ 939,653 Suppose that the Bethesda Mining Company had sales of $2,316,873 and net income of $93,381 for the year ending December 31, 2010. Required: Calculate ROE using the Du Pont identity. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).) Profit margin % Total asset turnover Equity multiplier Return on equity %

Bethesda Mining Company reports the following balance sheet information for 2009 and 2010.  
BETHESDA MINING COMPANY
Balance Sheets as of December 31, 2009 and 2010
    2009     2010       2009     2010  
 Assets             Liabilities and Owners’ Equity            
  Current assets                 Current liabilities            
    Cash $ 65,470   $ 82,487        Accounts payable $ 186,922   $ 194,611  
    Accounts receivable   65,281     85,639        Notes payable   82,020     133,588  
    Inventory   116,676     181,549    





  





         Total $ 268,942   $ 328,199  
      Total $ 247,427   $ 349,675    





 





  Long-term debt   231,000     167,750  
                Owners’ equity            
                   Common stock and paid-in surplus $ 224,000   $ 224,000  
                   Accumulated retained earnings   182,232     219,704  
  Fixed assets               





    Net plant and equipment $ 658,747   $ 589,978              Total $ 406,232   $ 443,704  
 





           





  Total assets $ 906,174   $ 939,653     Total liabilities and owners’ equity $ 906,174   $ 939,653  
 











 









 


Suppose that the Bethesda Mining Company had sales of $2,316,873 and net income of $93,381 for the year ending December 31, 2010.
 
Required:
Calculate ROE using the Du Pont identity. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)
 
  Profit margin  %
  Total asset turnover  
  Equity multiplier  
  Return on equity  %

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