Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2009 and 2010 2009 2010 2009 2010 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 3,061 $ 3,057 Accounts payable $ 2,178 $ 2,650 Accounts receivable 4,742 5,731 Notes payable 1,775 2,166 Inventory 12,578 13,732 Other 95 112 Total $ 20,381 $ 22,520 Total $ 4,048 $ 4,928 Long-term debt $ 12,900 $ 15,660 Owners’ equity Common stock and paid-in surplus $ 40,500 $ 40,500 Fixed assets Accumulated retained earnings 15,679 39,477 Net plant and equipment 52,746 78,045 Total $ 56,179 $ 79,977 Total assets $ 73,127 $ 100,565 Total liabilities and owners’ equity $ 73,127 $ 100,565 SMOLIRA GOLF, INC. 2010 Income Statement Sales $ 188,370 Cost of goods sold 126,703 Depreciation 5,283 EBIT $ 56,384 Interest paid 1,380 Taxable income $ 55,004 Taxes 19,251 Net income $ 35,753 Dividends $ 11,955 Retained earnings 23,798 Required: Construct the Du Pont identity for Smolira Golf. (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 %

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2009 and 2010
	2009		2010				2009		2010
Assets						Liabilities and Owners’ Equity
Current assets						Current liabilities
Cash	$	3,061	$	3,057		Accounts payable	$	2,178	$	2,650
Accounts receivable		4,742		5,731		Notes payable		1,775		2,166
Inventory		12,578		13,732		Other		95		112
Total	$	20,381	$	22,520		Total	$	4,048	$	4,928
						Long-term debt	$	12,900	$	15,660
						Owners’ equity
						Common stock
						and paid-in surplus	$	40,500	$	40,500
Fixed assets						Accumulated retained earnings		15,679		39,477
Net plant and equipment		52,746		78,045		Total	$	56,179	$	79,977
Total assets	$	73,127	$	100,565		Total liabilities and owners’ equity	$	73,127	$	100,565

SMOLIRA GOLF, INC. 2010 Income Statement
Sales			$	188,370
Cost of goods sold				126,703
Depreciation				5,283
EBIT			$	56,384
Interest paid				1,380
Taxable income			$	55,004
Taxes				19,251
Net income			$	35,753
Dividends	$	11,955
Retained earnings		23,798

Required:

Construct the Du Pont identity for Smolira Golf. (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		%

The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 64,500 Current assets $ 29,500 Debt $ 45,700 Costs 44,530 Fixed assets 82,400 Equity 66,200 Taxable income $ 19,970 Total $ 111,900 Total $ 111,900 Tax (30%) 5,991 Net Income $ 13,979 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 46 percent dividend payout ratio. No external financing is possible. Required: What is the sustainable growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Sustainable growth rate %

The most recent financial statements for Shinoda Manufacturing Co. are shown below:  

Income Statement			Balance Sheet
Sales	$	64,500	Current assets	$	29,500	Debt	$	45,700
Costs		44,530	Fixed assets		82,400	Equity		66,200
Taxable income	$	19,970	Total	$	111,900	Total	$	111,900
Tax (30%)		5,991
Net Income	$	13,979

 

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 46 percent dividend payout ratio. No external financing is possible.

 

Required:

What is the sustainable growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

 

Sustainable growth rate

%

The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 64,600 Current assets $ 30,000 Debt $ 46,200 Costs 44,480 Fixed assets 82,900 Equity 66,700 Taxable income $ 20,120 Total $ 112,900 Total $ 112,900 Tax (35%) 7,042 Net Income $ 13,078 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 47 percent dividend payout ratio. No external financing is possible. Required: What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Internal growth rate %

The most recent financial statements for Shinoda Manufacturing Co. are shown below:  

Income Statement			Balance Sheet
Sales	$	64,600	Current assets	$	30,000	Debt	$	46,200
Costs		44,480	Fixed assets		82,900	Equity		66,700
Taxable income	$	20,120	Total	$	112,900	Total	$	112,900
Tax (35%)		7,042
Net Income	$	13,078

 

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 47 percent dividend payout ratio. No external financing is possible.

 

Required:

What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

 

Internal growth rate

%

The Delson Company has an ROA of 8.6 percent, a 9.00 percent profit margin, and an ROE of 15.00 percent. Requirement 1: What is the company’s total asset turnover? (Round your answer to 2 decimal places (e.g., 32.16).) Total asset turnover times Requirement 2: What is the equity multiplier? (Round your answer to 2 decimal places (e.g., 32.16).) Equity multiplier times

The Delson Company has an ROA of 8.6 percent, a 9.00 percent profit margin, and an ROE of 15.00 percent.  

Requirement 1:

What is the company’s total asset turnover? (Round your answer to 2 decimal places (e.g., 32.16).)

 

Total asset turnover

times

 

Requirement 2:

What is the equity multiplier? (Round your answer to 2 decimal places (e.g., 32.16).)

 

Equity multiplier

times

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		%

Bethesda Mining Company reports the following balance sheet information for 2009 and 2010. Required: Prepare the 2009 and 2010 common-size balance sheets for Bethesda Mining. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).) 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 $ 40,010 % $ 51,181 % Accounts payable $ 191,922 % $ 199,611 % Accounts receivable 60,281 % 80,639 % Notes payable 87,020 % 138,588 % Inventory 128,441 % 194,689 % Total $ 278,942 % $ 338,199 % Total $ 228,732 % $ 326,509 % Long-term debt 241,000 % 177,750 % Owners’ equity Common stock and paid-in surplus $ 214,000 % $ 214,000 % Accumulated retained earnings 152,537 % 186,038 % Fixed assets Net plant and equipment $ 657,747 % $ 589,478 % Total $ 366,537 % $ 400,038 % Total assets $ 886,479 % $ 915,987 % Total liabilities and owners’ equity $ 886,479 % $ 915,987 %

Bethesda Mining Company reports the following balance sheet information for 2009 and 2010.

 

Required:

Prepare the 2009 and 2010 common-size balance sheets for Bethesda Mining. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

 

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	$	40,010			%	$	51,181			%	Accounts payable	$	191,922			%	$	199,611			%
Accounts receivable		60,281			%		80,639			%	Notes payable		87,020			%		138,588			%
Inventory		128,441			%		194,689			%
											Total	$	278,942			%	$	338,199			%
Total	$	228,732			%	$	326,509			%
											Long-term debt		241,000			%		177,750			%
											Owners’ equity
											Common stock and paid-in surplus	$	214,000			%	$	214,000			%
											Accumulated retained earnings		152,537			%		186,038			%
Fixed assets
Net plant and equipment	$	657,747			%	$	589,478			%	Total	$	366,537			%	$	400,038			%
Total assets	$	886,479			%	$	915,987			%	Total liabilities and owners’ equity	$	886,479			%	$	915,987			%