Calculate the asset turnover ratio. Note: Enter your response as a decimal rounded to 2 places. Asset turnover ratio 2023 2022 dollar sales per $1 of assets
Calculate the asset turnover ratio. Note: Enter your response as a decimal rounded to 2 places. Asset turnover ratio 2023 2022 dollar sales per $1 of assets
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.13MCE
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2022 and 2023
Gross sales
Sales returns and allowances
Net sales
Cost of merchandise (goods) sold
Gross profit
Operating expenses:
Depreciation
Selling and administrative
Research
Miscellaneous
Total operating expenses
Income before interest and taxes
Interest expense
Income before taxes
Provision for taxes
Net income
Current assets:
Cash
Accounts receivable
Merchandise inventory
Prepaid expenses
Total current assets
Total assets
Assets
Plant and equipment:
Building (net)
Land
Total plant and equipment
Current liabilities:
Accounts payable
Salaries payable
Total current liabilities
Long-term liabilities:
Mortgage note payable
Total liabilities
Common stock
Retained earnings
Liabilities
Asset turnover ratio
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2022 and 2023
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
2023
$ 21,200
800
2023
$ 20,400
11,450
$ 8,950
2022
$ 920
3,850
770
580
$ 6,120
$
2,830
780
$ 2,050
820
$ 1,230
2022
$ 16,650
100
$ 16,550
8,400
$ 8,150
Calculate the asset turnover ratio.
Note: Enter your response as a decimal rounded to 2 places.
$ 710
3,100
610
410
$ 4,830
$ 3,320
610
$ 2,710
1,084
$ 1,626
2023
$ 13,100
17,600
9,600
25,100
$ 65,400
$ 15,600
14,600
$ 30,200
$ 95,600
$ 14,100
8,100
$ 22,200
23,100
$ 45,300
$ 22,100
28,200
$ 50,300
$ 95,600
2022
$ 10,100
13,600
15,100
11,100
$ 49,900
$ 12,100
10,100
$ 22,200
$ 72,100
$ 8,100
6,100
$ 14,200
21,600
$ 35,800
$ 22,200
14,100
$ 36,300
$ 72,100
dollar sales per $1 of assets](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52ef247d-15fe-4d4f-8ef0-cbdc99261781%2F54d51b84-5d64-4275-b17f-58da52eeac2f%2Fpbiri5a_processed.png&w=3840&q=75)
Transcribed Image Text:LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2022 and 2023
Gross sales
Sales returns and allowances
Net sales
Cost of merchandise (goods) sold
Gross profit
Operating expenses:
Depreciation
Selling and administrative
Research
Miscellaneous
Total operating expenses
Income before interest and taxes
Interest expense
Income before taxes
Provision for taxes
Net income
Current assets:
Cash
Accounts receivable
Merchandise inventory
Prepaid expenses
Total current assets
Total assets
Assets
Plant and equipment:
Building (net)
Land
Total plant and equipment
Current liabilities:
Accounts payable
Salaries payable
Total current liabilities
Long-term liabilities:
Mortgage note payable
Total liabilities
Common stock
Retained earnings
Liabilities
Asset turnover ratio
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2022 and 2023
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
2023
$ 21,200
800
2023
$ 20,400
11,450
$ 8,950
2022
$ 920
3,850
770
580
$ 6,120
$
2,830
780
$ 2,050
820
$ 1,230
2022
$ 16,650
100
$ 16,550
8,400
$ 8,150
Calculate the asset turnover ratio.
Note: Enter your response as a decimal rounded to 2 places.
$ 710
3,100
610
410
$ 4,830
$ 3,320
610
$ 2,710
1,084
$ 1,626
2023
$ 13,100
17,600
9,600
25,100
$ 65,400
$ 15,600
14,600
$ 30,200
$ 95,600
$ 14,100
8,100
$ 22,200
23,100
$ 45,300
$ 22,100
28,200
$ 50,300
$ 95,600
2022
$ 10,100
13,600
15,100
11,100
$ 49,900
$ 12,100
10,100
$ 22,200
$ 72,100
$ 8,100
6,100
$ 14,200
21,600
$ 35,800
$ 22,200
14,100
$ 36,300
$ 72,100
dollar sales per $1 of assets
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