Calculation ROI, After-tax Profit Margin, ROE, Average Collection Period

Your Name
Subject and Section
Professor’s Name
October 27, 2018
Midterms
1 Accounts for Cambridge Co. 2017
Accounts Payable

519,000

Accounts Receivable

1,125,000

Accumulated Depreciation

1,407,000

Additional Paid-in Capital

960,000

Cash

190,000

Common Stock

40,000

Common Stock Dividends

223,600

Cost of Goods Sold

7,225,000

Depreciation Expense

455,000

Income Tax Expense

383,400

Interest Expense

235,000

Inventory

2,775,000

Long-term Debt

3,160,000

Net Sales

9,575,000

Short-term Notes Payable

675,000

Property, Plant, and Equipment

4,970,000

Retained Earnings

1,628,000

Selling and Administrative Expenses

382,000

Income Statement
Balance Sheet
2 Calculate the Following
1 Return on Investment (ROI)
= (Net Profit/ Total Liabilities and Stockholder Equity) x100
=($136,500/ $687,000) x 100
= 19.868% or 20% ROI
2 After-tax Profit Margin
= (Total Revenue – Total Expenses)/ Total Revenue
=($975,000 - $838,500)/ $975,000
=0.14 or 14%
3 Return on Equity (ROE)
=Net Income(annual)/ Shareholder’s Equity
=$136,500/ $305,000
=0.4475 or 44.75%
4 Average Collection Period
= A...