Exam 3: Fundamental Interpretations Made From Financial Statement Data

Around Square, Inc.had an ROI of 12.5%, turnover of 5.0, and sales of $8 million for the year.Around Square's margin for the year was:

Another term for return on investment is:

Mechforce Manufacturing's net income was $420,000 on sales of $14 million.Average assets for the year were $10 million.Turnover for the year was:

Another term for return on equity is:

If a firm borrowed money on a six-month bank loan, the firm's working capital immediately after obtaining the loan, relative to its working capital just prior to the loan, would be:

2R Designs has accounts receivable of $4,100, cash of $3,500, property, plant, and equipment of $30,200, merchandise inventory of $2,200, accounts payable of $5,700, other accrued liabilities of $1,300, common stock of $10,000, and retained earnings of $23,000. Required: Calculate 2R Designs' working capital and current ratio.

Compoform's net income for the year was $320,000.Average liabilities totaled $1.6 million and average stockholders' equity totaled $2.4 million.Return on investment (ROI)was:

The return on investment measure of performance:

Mechforce Manufacturing's net income was $420,000 on sales of $14 million.Average assets for the year were $10 million.ROI for the year was:

Financial ratios:

NTO Designs has a margin of 7%, turnover of 1.2, and sales of $2,100,000. Required: Calculate NTO Designs' net income, average total assets, and return on investment (ROI).

The return on investment measure of performance: