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Valentin [98]
3 years ago
5

Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet da

ta are as of the end of the fiscal year (in millions).
2020 2019
Net sales $5,200 $5,500
Cost of goods sold 3,484 3,830
Net income 78 123
Accounts receivable 82 103
Inventory 1,146 1,262
Total assets 2,990 3,510
Total common stockholders’ equity 992 1,031

Required:
Compute the following ratios for 2020.
Business
1 answer:
grandymaker [24]3 years ago
3 0

Answer:

Profit margin = net profit / total sales = $78 / $5,200 = 1.5%  

Asset turnover = total sales / average total assets = $5,200 / ($2,990 + $3,510) = 1.6

Return on assets = net income / average total assets = $78 / $3,250 = 2.4%  

Return on common stockholders’ equity =  net income / average stockholders' equity = $78 / ($992 + $1,031) = 7.71%  

Gross profit rate = gross profit / total sales = $1,716 / $5,200 = 33%

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Particulars  Year  Amount ($)

Cash outflow  0  -40000

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<u>Answer:3</u> IRR=17%

with salvage value

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Cash outflow  0  -40000

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using IRR function in excel.

5 0
3 years ago
Nathanial Drummond has three different insurance policies. He has been injured in an accident and has incurred $30,000 in medica
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<span>The answer is D. Major medical insurance.</span>

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Answer:

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To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

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3 years ago
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Answer:

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5 0
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