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).
2017
2016
Net sales $5,121.8 $5,286.7
Cost of goods sold 3,540.6 3,679.8
Net income 75.9 135.8
Accounts receivable 81 107.1
Inventory 1,203.5 1,358.2
Total assets 2,993.9 3,249.8
Total common stockholders’ equity 921.6 1,074.7
Compute the following ratios for 2017. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%)
(a) Profit margin
Entry field with correct answer
%
(b) Asset turnover
Entry field with incorrect answer
times
(c) Return on assets
Entry field with correct answer
%
(d) Return on common stockholders’ equity
Entry field with incorrect answer
%
(e) Gross profit rate
Entry field with correct answer
%
2017
2016
Net sales $5,121.8 $5,286.7
Cost of goods sold 3,540.6 3,679.8
Net income 75.9 135.8
Accounts receivable 81 107.1
Inventory 1,203.5 1,358.2
Total assets 2,993.9 3,249.8
Total common stockholders’ equity 921.6 1,074.7
Compute the following ratios for 2017. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%)
(a) Profit margin
Entry field with correct answer
%
(b) Asset turnover
Entry field with incorrect answer
times
(c) Return on assets
Entry field with correct answer
%
(d) Return on common stockholders’ equity
Entry field with incorrect answer
%
(e) Gross profit rate
Entry field with correct answer
%
1 answer:
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Answer: The value of this exchange is $8,816.05.
Explanation:
The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that
k = koruna
b = baht
Step 1:
Sales Revenue = k2,200,000
(To get USD amount :
Purchase Cost = b3,200,000
(To get USD amount :
Step 2:
Profit = Sales Revenue - Purchase cost
= $86,750.7886 - $77,934.7297
= $8,816.0589
The value of this exchange is $8,816.05.