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Hi there, I need help with the following questions- could you-(Answered)

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Hi there, I need help with the following questions- could you help?

2013 2012 2011

Revenues $424,780 $396,517 $389,214

Net Income 9,746 3,950 3,613

Average Total Assets 242,076 224,359 211,886

Average Shareholders' Equity 55,367 52,882 50,041

a. Compute the rate of return on equity for each year. Round your answers to one decimal place.

2011

2012

2013

b. Disaggregate the rate of return on equity into profit margin, total assets turnover, and financial leverage ratio components. Round your answers to two decimal places. (Due to rounding, the ROE calculated from these results may vary from your answer in part a.)

Year Profit Margin Total Assets Turnover Financial Leverage Ratio

2011

2012

2013

Here is the second question...

Calem Garter

Revenues $2,352 $33,041

Net Income 329 8,591

Average Total Assets 1,915 36,479

Calem operates a chain of restaurants featuring value-priced meals and owns all of its restaurants. Garter also sells value-priced meals but operates through both company-owned and franchised restaurants. Garter owns the land and buildings of most of its franchised restaurants and leases the space to the franchisees.

a. Calculate the rate of return on assets for each company. Round your answers to two decimal places.

Calem

Garter

b. Disaggregate the rate of return on assets in part a into profit margin and total assets turnover components. Round Return on Assets and the Profit Margin to two decimal places, and Total Assets Turnover to one decimal place. Use DuPont analysis to compute the Return on Assets.

Return on Assets = Profit Margin x Total Assets Turnover Ratio

Calem

Garter


Hi there, I need help with the following questions? could you help?

 

2013 2012 2011

 

Revenues

 

$424,780

 

$396,517

 

$389,214

 

Net Income 9,746 3,950 3,613

 

Average Total Assets 242,076

 

224,359

 

211,886

 

Average Shareholders' Equity

 

55,367 52,882 50,041

 

a. Compute the rate of return on equity for each year. Round your answers to one decimal

 

place.

 

2011

 

2012

 

2013

 

b. Disaggregate the rate of return on equity into profit margin, total assets turnover, and financial

 

leverage ratio components. Round your answers to two decimal places. (Due to rounding, the

 

ROE calculated from these results may vary from your answer in part a.)

 

Year Profit Margin Total Assets TurnoverFinancial Leverage Ratio

 

2011

 

2012

 

2013

 

Here is the second question...

 

Calem Garter

 

Revenues

 

$2,352 $33,041

 

Net Income 329

 

8,591

 

Average Total Assets 1,915 36,479

 

Calem operates a chain of restaurants featuring value?priced meals and owns all of its restau?

 

rants. Garter also sells value?priced meals but operates through both company?owned and fran?

 

chised restaurants. Garter owns the land and buildings of most of its franchised restaurants and

 

leases the space to the franchisees.

 

a. Calculate the rate of return on assets for each company. Round your answers to two decimal

 

places.

 

Calem

 

Garter

 

b. Disaggregate the rate of return on assets in part a into profit margin and total assets turnover

 

components. Round Return on Assets and the Profit Margin to two decimal places, and Total

 

Assets Turnover to one decimal place. Use DuPont analysis to compute the Return on Assets.

 

Return on Assets

 

=

 

Profit Margin x

 

Total Assets Turnover Ratio

 

Calem

 

Garter

 


 

 

Paper#9210796 | Written in 27-Jul-2016

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