Grundig Technologies Is a Manufacturer

question 2

Essay

Grundig Technologies is a manufacturer.Below are the company's two most recent balance sheets and its most recent income statement.Use this information to answer the following questions:
a.Calculate the rate of return on assets (ROA)for 2011.Disaggregate ROA into the profit margin for ROA and total assets turnover components.
b.Calculate the rate of return on common stockholders' equity (ROCE)for 2011.Disaggregate ROCE into the profit margin for ROCE,total assets turnover and capital structure leverage components.
c.Did financial leverage work to the advantage of the common shareholders during 2011? Explain.
$\begin{array}{lrr}\text { Gitudig \& echinologies }\\\text {Balance Sheet}\\\text {As of December 31}\\\text { ASSETS } & \mathbf{2 0 1 1} & \mathbf{2 0 1 0} \\\text { Cash } & \$ 69,000 & \$ 22,000 \\\text { Accounts Receivable } & 82,000 & 66,000 \\\text { Supplies } & 15,000 & 19,000 \\\text { Inventories } & 180,000 & 189,000 \\\text { Land } & 75,000 & 110,000 \\\text { Equipment } & 260,000 & 200,000 \\\text { Accumulated Deprec.-EQ. } & (69,000) & (42,000)\\\text { TOTAL ASSETS }& \$ 612,000 & \$ 564,000 \\\\\text { Accounts Payable } & \$ 34,000 & \$ 47,000 \\\text { Unearned Rent } & 15,000 & 19,000 \\\text { Bonds Payable } & 150,000 & 200,000\\\text { Stockholders' Equity }\\\text {Common Stock( \$1 Par Value)}&214,000 & 164,000 \\\text {Retained Earnings}&199,000 & 134,000 \\\text { TOTAL LIABILITIES AND EQUITY }&\$ 612.000 & \$ 564,000 \\\\\text {Grundig Technologies}\\\text {Income Statement}\\\text {For the year ended December 31,2011}\\\\\text { Sales }& \$ 560,000 \\\text { Cost of Goods Sold } & \$ 320,000)\\\text { Gioss Profit }&\$ 240,000\\\\\text { General and Administrative Expense } & (\$ 38,000) \\\text { Selling Expense } & (\$ 27,000) \\\text { Interest Expense } & (\$ 17,000)\\\\\text { Income before Income taxes }&\$ 158,000\\\text { Income Tax Expense (35\%)}&\$ 158,000\\\text { Net Income}&(\$ 55,300)\\\end{array}$

Identify the significance of therapeutic elements like insight and motivation in the treatment process.

Recognize the role and training of different mental health professionals.

Understand the impact of therapy techniques on behavior and mental states.

Acknowledge the importance and methods of gaining access to unconscious material in therapy.

---

Definitions:

Partial Reinforcement

A conditioning strategy in which a reward is not administered every time the desired behavior is performed, leading to more resilient behavior than with continuous reinforcement.

Continuous

Continuous refers to something that unceasingly occurs over a period of time without interruption or breaks.

Partial-Reinforcement Extinction Effect

The greater persistence of behavior under partial reinforcement than under continuous reinforcement.

Continuous Reinforcement

A learning process in operant conditioning where a behavior is reinforced each time it occurs, leading to rapid learning.