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d) 55.00 Use the following information for the next 4 questions Southhampion Cor

ID: 2808666 • Letter: D

Question

d) 55.00 Use the following information for the next 4 questions Southhampion Corporation's financial statements (S millions) 2014 $2,010 Income Statement Summary 2013 s 1.799 Sales Earnings before interest & taxes $304 (EBIT) Interest expense (net) Income before taxes $221 7 $214 (79) (12) $292 (99) 34% $193 Income Taxes Tax Rate Net income Common shares outstanding (millions) 38 mary 2012 $504 513 681 151 2013 2014 Current assets $654 Timberland assets Property, plant& equipment 508 718 34 513 827 Other assets Total assets 38 $1,849 $1,796 $2,032 Current liabilities $176 493 136 1,044 $180 530 $162 370 127 1,137 Long-term debt Deferred taxes& other Equity Total liabilities & equity $1,849 $1.79$2,032

Explanation / Answer


b) 0.987, 1.05

Asset turnover ratio = Sales / Average total assets

ATO 2013 = 1799 / ((1849+1796)/2) = 0.987

ATO 2014 = 2010 / ((1796+2032)/2) = 1.05