Question

For each of the four firms below (CAT, DOG, FERRET, and ALPACA), use the given values to solve for the missing values. Notes: We are equating ROA and ROI in this problem; see page 1090 of your text. You may assume that balances for total assets, etc. are averages, when necessary, and that sales are net sales. Assume that "invested capital" = total assets. Assume that the tax rate for all firms is 20%, and that the weighted average cost of capital is the minimum acceptable return CAT sales $200,000 COGS $125,000 operating income $50,000 DOG FERRET ALPACA $1,750,000 $300,000 $750,000 $50,000 $150,000 $80,000 $150,000 $475,000 $300,000 $250,000 $150,000 $500,000 $3,500,000 $700,000 $1,000,000 0.700 0.575 $300,000 0.750 0.400 0.486 0.375 0.050 0.220 0.150 0.283 0.353 operating expenses net income $60,000 $75,000 current assets current liabilities total assets $700,000 total liabilities debt ratio 0.500 working capital $15,000 current ratio gross profit rate (gross profit margin) ROA (ROI) ROE return on sales (ROS) capital turnover residual income (RI) EVA weighted average cost of capital 0.100 0.100 0.250 0.600 $120,000 ($62,000) $121,000 0.150

          For each of the four firms below (CAT, DOG, FERRET, and ALPACA), use the given values to solve for the missing values. Notes: We are equating ROA and ROI in this problem; see page 1090 of your text. You may assume that balances for total assets, etc. are averages, when necessary, and that sales are net sales. Assume that "invested capital" = total assets. Assume that the tax rate for all firms is 20%, and that the weighted average cost of capital is the minimum acceptable return
CAT sales $200,000 COGS $125,000 operating income $50,000
DOG
FERRET ALPACA $1,750,000 $300,000 $750,000 $50,000 $150,000 $80,000 $150,000 $475,000 $300,000 $250,000 $150,000 $500,000 $3,500,000 $700,000 $1,000,000 0.700 0.575 $300,000 0.750 0.400 0.486 0.375 0.050 0.220 0.150 0.283 0.353
operating expenses
net income
$60,000 $75,000
current assets current liabilities total assets $700,000 total liabilities debt ratio 0.500 working capital $15,000 current ratio gross profit rate (gross profit margin) ROA (ROI) ROE return on sales (ROS) capital turnover residual income (RI) EVA weighted average cost of capital 0.100
0.100
0.250 0.600 $120,000
($62,000) $121,000 0.150

for each of the four firms below cat dog ferret and alpaca use the given values to solve for the missing values notes we are equating roa and roi in this problem see page 1090 of your text y 87125

Added by Matthew M.

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