question 86
Multiple Choice
Exhibit 14.9
Use the Information Below for the Following Problem(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)
Sales Cost of Goods Sold Gross Profit Depreciation Operating Expenses Administration Exp. Operating Profit 795 Interest Expense Profit Before Taxes Taxes Net Income Dividends5,4503,2502,20082047011588707247460250
Assets Cash Accounts Receivable Inventory Total Current Assets Net Fixed Assets Total Assets 1001,2501,1252,4751,4503,925 Liabilities Notes Payable Accounts Payable Total Current Liab. Long Term Debt Common Stock Retained Earnings Total Liab. & Earnings 8501,5502,4004254007003,925
-Refer to Exhibit 14.9.Calculate the return on equity (ROE) for Rollerball Corporation and the Industry.
Rollerball Industry Average
Definitions:
Subordinates
Individuals who are lower in rank or position in an organizational or hierarchical structure.
Short-Term Store
A temporary storage facility where information is modified to create a more meaningful experience.
Spreading Activation
A theory in cognitive science suggesting that thoughts and ideas in memory are connected; activation of one concept triggers nearby or related concepts.
Visuospatial Sketchpad
A rehearsal system that holds and analyzes visual and spatial information.