Carson Inc

question 51

Essay

Carson Inc.reported net sales revenue of $850,000 and paid no dividends during the current year.The following information is also available at the end of the current and prior years:

There was no preferred stock outstanding during the current year.
Required:
Part a.Calculate the return on equity for the current year.
Part b.Calculate the debt-to-assets ratio for the current year.
Part c.Calculate the fixed asset turnover ratio for the current year.
Part d.Calculate the current ratio for the current year.
Round all ratios to two decimal points.

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Definitions:

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable net assets. This differential is often allocated to goodwill or adjusted against specific assets.

Impairment Loss

A financial write-down in book value due to impairment, reflecting a decrease in the recoverable amount of an asset beyond its current carried cost.

Consolidated Patents

Patents owned by a parent company and its subsidiaries that are combined for reporting purposes on consolidated financial statements.

Goodwill Impairment

This occurs when there is evidence that the value of goodwill has declined permanently beyond its recoverable amount, necessitating a write-down in its book value.