eng111_discussion_week2_questions_and_answers

eng111_discussion_week2_questions_and_answers - ENG 111...

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ENG 111 Discussion Week 2 Winter 2009 Q1. Given the balance sheet and income statement [1] of the following companies, calculate the following financial ratios. (1) Current ratio Total asset turnover Profit margin Equity multiplier Return on equity (2) Verify the Du Pont identity by the results in (1).
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Broadcom Corp. (BRCM) Balance Sheet:
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Broadcom income statement:
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QUALCOMM Inc. (QCOM) Balance sheet
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Qualcomm Income statement
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Ford Motor Co. (F) Balance sheet
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Solution: (1) Current Ratio=Current Asset/Current Liabilities Total asset turnover=Sales/Total Assets Profit margin=Net Income/Sales Equity multiplier=Total assets/total equity Return on equity=Net income/total equity Broadcom Corp(31-Dec-07): Current Ratio=3054280/757609=4.03 Total asset turnover=3776395/4838193=0.78 Profit margin=213342/3776395=0.0565 Equity multiplier=4838193/4036148=1.1987 Return on equity=213342/4036148=0.0529
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This note was uploaded on 04/05/2010 for the course ENGR 111 taught by Professor King during the Winter '09 term at UCLA.

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eng111_discussion_week2_questions_and_answers - ENG 111...

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