Need help with this one please answer all parts of the question a-e thanks. Also
ID: 2328916 • Letter: N
Question
Need help with this one please answer all parts of the question a-e thanks. Also, use the financial statement, balance sheet and financial data to help you.
Explanation / Answer
a. ROI=Net income/Investment Net income=Net earnings attributable to campbell company=$ 818 Investment=Total debt+Total equity Total debt=Total liabilities=$ 6510 Total equity=$ 1603 Investment=6510+1603=$ 8113 ROI=818/8113=0.1008=10.08% b. ROE=Net income/Shareholder's equity Net income=Net earnings attributable to campbell company=$ 818 Shareholder's equity=Total equity=$ 1603 ROE=818/1603=0.5103=51.03% c. Working capital=Current asset-Current liabilities Aug 3,2014 July 28,2013 Current assets 2100 2221 Less: Current liabilities 2989 3282 Working capital -889 -1061 d. Current ratio=Current asset/Current liabilities Aug 3,2014 July 28,2013 Current assets 2100 2221 Current liabilities 2989 3282 Current ratio 0.70 0.68 e. Acid-test ratio=(Current assets-Inventories)/Current liabilities Aug 3,2014 July 28,2013 Current assets 2100 2221 Less: inventories 1016 925 1084 1296 Current liabilities 2989 3282 Acid-test ratio 0.36 0.39