Comparative calendar year financial data for a company are shown below. Calculate the following ratios for 20X2:(a) return on total assets(b) return on common stockholders' equity.? 20X2 20X1Sales$ 720,000$ 607,500Gross profit270,000224,800Income before taxes79,20078,700Net income51,20051,700???????12/31/20X212/31/20X1Liabilities$ 493,500$ 452,500Common stock ($12 par)180,000180,000Contributed capital in excess of par135,000135,000Retained earnings 204,000 177,300Total liabilities and equity$1,012,500$ 944,800??
What will be an ideal response?
| (a) $51,200/(($1,012,500 + $944,800)/2) = | 5.2% |
| ? | ? |
| (b) 20X2 equity = $180,000 + $ 135,000 + $204,000 | $519,000 |
| 20X1 equity = $180,000 + $135,000 + $177,300 | $492,300 |
| $51,200/[($519,000 + $492,300)/2] | 10.1% |
| ? | ? |
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What will be an ideal response?
NestleWhen consumers think of Nestle, they probably think of chocolate. Historically, though, Nestle's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafe, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestle is hoping to become the "world's leading health, nutrition, and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestle wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining their product mix by selling underperforming
items or lines that do not fit its new direction. Critics claim this new focus could hurt the company's existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company.Refer to Nestle. After developing these new, functional products, Nestle will have to change consumers' perceptions of its brands because it is known for indulgence, not wellness. Nestle will have to _____ itself. A. reinvent B. reposition C. rename D. modify E. standardize