please I need help a. which affiliate has the highest return on sales? b. which
ID: 2789937 • Letter: P
Question
please I need help
a. which affiliate has the highest return on sales?
b. which affiliate has the lowest return on assets?
c. which affiliate has the highest total asset turnover?
d. which affiliate has the highest return on stockholders equity ?
e. which affiliate has the highest debt ratio? (assets minus stockholders equity equals dept) f. returning to question b. explain why the software affiliate has the highest return on total assets
g. returning to question d. explain why the personal computer affiliate has a higher return on stockholders equity than the foreign operations affiliate even though it has a lower return on total assets
Explanation / Answer
Ans (a)
return on sales = net income /sales
= 2000000/40000000 = 5%
=2000000/60000000 = 3.33%
=8000000/100000000 = 8%
highest return on sales is in foreign operattions
ans (b)
return on assets= net profit / assets
2000000/5000000 = 40%
2000000/250000000= 8%
8000000/60000000= 13.33%
lowest return on assets is PC division
Ans ( c)
asset turnover = sales /total assets
40000000/5000000= 8 times
60000000/25000000 = 2.4 toimes
100000000/60000000 = 1.66 times
highest asset turnover is software section
ans (d)
return on stockholder's equity= net profit after taxes/ stockholder's equity
= 2000000/4000000= 50%
2000000/10000000 =20%
8000000/50000000 =16%
highest return on stockholder 'S EQUITY IS GIVEN BY software
anss E
debt ratio= debt /equity
= 1000000/4000000= -0.25
=15000000/10000000 = 1.5
10000000/50000000= 0.20
highest debt ratio is PC section
ans F
particulars software PC foreign operations sales 40000000 60000000 100000000 net income after tax 2000000 2000000 8000000 assets 5000000 25000000 60000000 stockholder's equity 4000000 10000000 50000000Related Questions
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