- Calculate theRate of Return on Assets(ROA) for 2011.Disaggregate ROA into theprofit margin for ROAandtotal assets turnover components.
- Calculate theRate of Return on Common Stockholders’ Equity (ROCE) for 2011.Disaggregate ROCE into theprofit margin for ROCE,total assets turnover andcapital structure leverage components.
Extracted text: Grundig Technologies Balance Sheet (As of December 31, 2011) ASSETS 2011 2010 Cash S 69,000 $ 22,000 Accounts Receivable $82,000 S66,000 Supplies $15,000 $19,000 Inventories $189,000 $110,000 $200,000 $180,000 Land $75,000 Equipment Accumulated Depreciation $260,000 (69,000) (42,000) TOTAL ASSETS $612.000 $564,000 LIABILITIES Accounts Payable $ 34,000 $ 47,000 Unearned Rent $15,000 $150,000 $19,000 $200,000 Bonds Payable Stockholders' Equity Common Stock( $1 Par Value) Retained Earnings $164,000 134,000 $214,000 199,000 TOTAL LIABILITIES AND EQUITY $612,000 $564,000 Grundig Technologies Income Statement For the year ended December 31, 201i Sales $560,000 Cost of Goods Sold ($320,000) Gross Profit $240,000 General and Administrative Expense Selling Expense Interest Expense ($38,000) ($27,000) (S17,000) Income before Income taxes $158,000 Income Tax Expense (35%) (S55,300) Net Income $102.700