Problem 12-6 Microsoft Edge edugen wileyplus.com/edugen/shared/assignment/test/q
ID: 2457259 • Letter: P
Question
Problem 12-6 Microsoft Edge edugen wileyplus.com/edugen/shared/assignment/test/qprint.uni *Problem 12-6 Consider the following information for HandyCraft Stores for 2014 and 2015: 2014 2015 Total assets $59,100,000 $56,400,000 Noninterest-bearing current liabilities 4,470,000 4,910,000 3,630,000 4,960,000 Net income Interest expense 2,470,000 2,900,000 66,000,000 96,250,000 Tax rate 30% 30% EK Your answer is incorrect. Try again. cimal places, e.g. 1 2015 2014 ROI 16.14 EK Your answer is incorrect. Try again. down into profit margin and investment turnover. (Round answers t Break ROI 4 decimal places, e.g. 15.3 2014 2015 Profit margin 055 05153 Investment turnover 1.1168 1.7066 Question Attempts: 2 of 5 used 5:50 PM 2/1/20Explanation / Answer
Calculation of Return on investment (ROI)
2014
2015
Net income (A)
$ 3,630,000
$ 4,960,000
Total Assets (B)
$ 59,100,000
$ 56,400,000
Return on Investment = A/B
6.14%
8.79%
Calculation of Profit Margin
2014
2015
Net income (A)
$ 3,630,000
$ 4,960,000
Sales (B)
$ 66,000,000
$ 96,250,000
Profit Margin =A/B
0.0550
0.0515
Calculation of Investment Turnover
2014
2015
Sales (A)
$ 66,000,000
$ 96,250,000
Total Assets (B)
$ 59,100,000
$ 56,400,000
Investment Turnover = A/B
1.1168
1.7066
Calculation of Return on investment (ROI)
2014
2015
Net income (A)
$ 3,630,000
$ 4,960,000
Total Assets (B)
$ 59,100,000
$ 56,400,000
Return on Investment = A/B
6.14%
8.79%
Calculation of Profit Margin
2014
2015
Net income (A)
$ 3,630,000
$ 4,960,000
Sales (B)
$ 66,000,000
$ 96,250,000
Profit Margin =A/B
0.0550
0.0515
Calculation of Investment Turnover
2014
2015
Sales (A)
$ 66,000,000
$ 96,250,000
Total Assets (B)
$ 59,100,000
$ 56,400,000
Investment Turnover = A/B
1.1168
1.7066