FI-360 Homework 4-2

FI-360 Homework 4-2 - Foundations of Financial Management...

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Foundations of Financial Management FI360 Homework Assignment 4 “Financial Statement Analysis” 1. Dental Delights has two divisions. Division A has a profit of $200,000 on sales of $4,000,000. Division B is only able to make $30,000 on sales of $480,000. Based on the profit margins (returns on sales), which division is superior? Division A Division B Net Income 200,000 = 5% 30,000 =6.25% Sales 4,000,000 480,000 Division B is superior 2. Griffey Junior Wear, Inc., has $800,000 in assets and $200,000 of debt. It reports net income of $100,000. a. What is the return on assets? b. What is the return on stockholders’ equity? a. return on assets- Net Income 100,000 = 12.5% Total Assets 800,000 b. stockholders equity- debt total assets total equity rs' Stockholde - = Net Income 100,000 = 16.67% Stockholders equity 600,000 3. One-Size-Fits-All Casket Co.’s income statement for 2008 is as follows: Sales. ...................................................................................... $3,000,000
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This note was uploaded on 02/09/2011 for the course FIN 360 taught by Professor Smith during the Spring '10 term at Park.

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FI-360 Homework 4-2 - Foundations of Financial Management...

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