Solution-Finding return on assets ratio-return on equity

Finding return on assets ratio-return on equity ratio

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Reference no: EM133039892

Problem:

Following information is available for ABC Company:

Net Income to Common	736
Preference dividend	0
Net income or Profit for the year	736
Net unusual income	0

Minority Interest in income	18

Net Interest Expense after Tax	- 193.7
Net interest expense	- 269
Statutory Tax rate	28%

Sales	18,643

Assets at the start	15,117
Assets at the end	14,373
Assets Average	14,745.0

Shareholders' Equity at the start	6,620
Shareholders' Equity at the end	6,708
Shareholders' Equity average	6,664.0

Required:

Based on the above information, calculate:

a) Return on Assets ratio. Analyse the results and comment.

b) Return on equity ratio. Analyse the results and comment.

Reference no: EM133039892

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Finding return on assets ratio-return on equity ratio

Reference no: EM133039892

Reference no: EM133039892

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