This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Balance SheetCFM Majestic Inc.Years 1 & 2 ($000,000s)Year 1Year ... (Read 17 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
on: Apr 25, 2021
Balance Sheet
CFM Majestic Inc.
Years 1 & 2 ($000,000s)
​Year 1Year 2
Cash29.221.2
A/R108.2122.6
Inventory74.079.7
Total Current Assets211.4223.5
Fixed Assets, Net81.694.1
Goodwill159.6184.5
Total Assets452.6502.1
Accounts Payable46.450.5
Short-term Debt23.027.0
Total Current Liabilities69.477.5
Long Term Debt125.8128.5
Deferred income taxes14.018.6
Equity​​
Share Capital148.9151.8
Retained Earnings94.5125.7
Owners' Equity243.4277.5
Total Liabilities & Equity452.6502.1


Income Statement
CFM Majestic Inc.
Years 1 & 2 ($000,000s)
​Year 1Year 2
Sales381.9416.3
COGS244.9278.9
SG&A59.763.8
Depreciation13.815.4
R & D5.34.3
EBIT58.253.9
Interest Expense7.37.9
Earnings before Income Tax50.946.0
Income Taxes17.314.8
Net Income33.631.2

Referring to the CFM Majestic financial statements, pick the most informative explanation for why ROA fell.
◦ ROA fell because both gross margin fell and Selling, General & Admin expenses as a percentage of sales fell.
◦ ROA fell because Total Asset Turnover fell.
◦ ROA fell because the Equity Multiplier fell and because Cost of Goods Sold over Sales rose.
◦ ROA fell because Net Income grew more slowly than Total Assets.
◦ ROA fell mainly because gross margin fell.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by bobbie on Apr 25, 2021

jaykayy05

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly


bobbie

  • Member
  • Posts: 592
Reply 2 on: Apr 25, 2021
:D TYSM

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

The Dingo was the first placental mammal introduced to Australia, around 4000 years ago The Dingo was the first placental mammal introduced to Australia, around 4000 years ago
Each year, the leaders of the world’s eight most powerful nations meet in a secluded place to make ... Each year, the leaders of the world’s eight most powerful nations meet in a secluded place to make ...
Protein Needs Are Determined by Nitrogen Balance in Your Body Protein Needs Are Determined by Nitrogen Balance in Your Body
In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents
Dragon Chinese new year 2023 Dragon Chinese new year 2023
Earth 65 Million Years Ago Earth 65 Million Years Ago
Video: Pressure Flow Model Animation

For a complete list of videos, visit our video library