Consider the following excerpt of Butterfly Corporation's balance sheet and income statement Use the excerpt of Corporation's balance sheet and its income statement to compute 's profit margin and return on assets for 2022 and 2023. Comment on Butterfly's profitability and changes in profitability from 2022 to 2023 . Butterfly's total assets at the end of were $169,000 million. (in millions) 2023 2022 Sales $67,000 $66,000 Cost of Goods Sold 34,000 33,700 Gross Profit 33,000 32,300 Selling, General, and Administrative Expenses 15,000 15,100 Research and Development Expense 7,500 7,700 Interest Expense 190 185 Earnings before Taxes 10,310 9,315 Income Tax Expense 3,100 3,000 Net Income $7,210 $6,315 Assets (dollars in millions) 2023 2022 Current Assets Cash and Cash Equivalents $20,000 $28,000 Marketable Securities 7,900 2,900 Accounts Receivable Trade, Net 24,000 23,000 Inventories 53,000 50,000 Prepaid Expenses and Other Receivables 2,000 1,800 Total Current Assets 106,900 105,700 Property, Plant, and Equipment, Net 74,000 71,000 Other Assets 3,900 3,600 Total Assets $184,800 $180,300 Begin by determining Butterfly's profit margin Now determine Butterflys Retur
Consider the following excerpt of Butterfly Corporation's balance sheet and income statement Use the excerpt of Corporation's balance sheet and its income statement to compute 's profit margin and return on assets for 2022 and 2023. Comment on Butterfly's profitability and changes in profitability from 2022 to 2023 . Butterfly's total assets at the end of were $169,000 million. (in millions) 2023 2022 Sales $67,000 $66,000 Cost of Goods Sold 34,000 33,700 Gross Profit 33,000 32,300 Selling, General, and Administrative Expenses 15,000 15,100 Research and Development Expense 7,500 7,700 Interest Expense 190 185 Earnings before Taxes 10,310 9,315 Income Tax Expense 3,100 3,000 Net Income $7,210 $6,315 Assets (dollars in millions) 2023 2022 Current Assets Cash and Cash Equivalents $20,000 $28,000 Marketable Securities 7,900 2,900 Accounts Receivable Trade, Net 24,000 23,000 Inventories 53,000 50,000 Prepaid Expenses and Other Receivables 2,000 1,800 Total Current Assets 106,900 105,700 Property, Plant, and Equipment, Net 74,000 71,000 Other Assets 3,900 3,600 Total Assets $184,800 $180,300 Begin by determining Butterfly's profit margin Now determine Butterflys Retur
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 19SP
Related questions
Question
Consider the following excerpt of Butterfly Corporation's balance sheet and income statement Use the excerpt of Corporation's balance sheet and its income statement to compute 's profit margin and return on assets for 2022 and 2023. Comment on Butterfly's profitability and changes in profitability from 2022 to 2023 . Butterfly's total assets at the end of were $169,000 million.
|
(in millions)
|
2023
|
2022
|
|
Sales
|
$67,000
|
$66,000
|
|
Cost of Goods Sold
|
34,000
|
33,700
|
|
Gross Profit
|
33,000
|
32,300
|
|
Selling, General, and Administrative Expenses
|
15,000
|
15,100
|
|
Research and Development Expense
|
7,500
|
7,700
|
|
Interest Expense
|
190
|
185
|
|
Earnings before Taxes
|
10,310
|
9,315
|
|
Income Tax Expense
|
3,100
|
3,000
|
|
Net Income
|
$7,210
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$6,315
|
|
Assets (dollars in millions)
|
2023
|
2022
|
|
Current Assets
|
||
|
Cash and Cash Equivalents
|
$20,000
|
$28,000
|
|
Marketable Securities
|
7,900
|
2,900
|
|
Accounts Receivable Trade, Net
|
24,000
|
23,000
|
|
Inventories
|
53,000
|
50,000
|
|
Prepaid Expenses and Other Receivables
|
2,000
|
1,800
|
|
Total Current Assets
|
106,900
|
105,700
|
|
Property, Plant, and Equipment, Net
|
74,000
|
71,000
|
|
Other Assets
|
3,900
|
3,600
|
|
Total Assets
|
$184,800
|
$180,300
|
Begin by determining Butterfly's profit margin
Now determine Butterflys Return on Assets and Average Total Asset
Now determine Butterflys Return on Assets and Average Total Asset
Expert Solution
Step 1
Ratio analysis is quantitive method of getting inside review of an organisation. Which able to provide compression between financial statements of two organisations or with past years results.
Thare are various types of Ratio such as profitability Ratio, solvency Ratio, liquidity ratio etc.
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