Marovich Corporation Has Provided the Following Financial Data

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The Answer is a.Net profit margin percentage = Net income ÷ Sales= $36,000 ÷ $1,230,000 = 2.9% (rounded)b.Gross margin percentage = Gross margin ÷ Sales= $420,000 ÷ $1,230,000 = 34.1% (rounded)c.Return on total assets = Adjusted net income* ÷ Average total assets**= $41,850 ÷ $1,316,000 = 3.18% (rounded)*Adjusted net income = Net income + [Interest expense × (1 − Tax rate)]= $36,000 + [$9,000 × (1 − 0.35)] = $41,850**Average total assets = ($1,332,000 + $1,300,000) ÷ 2 = $1,316,000d.Return on equity = Net income ÷ Average stockholders' equity*= $36,000 ÷ $1,026,000 = 3.51% (rounded)*Average stockholders' equity = ($1,042,000 + $1,010,000) ÷ 2 = $1,026,000e.Earnings per share = Net Income ÷ Average number of common shares outstanding*= $36,000 ÷ 50,000 shares = $0.72 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $200,000 ÷ $4 per share = 50,000 sharesf.Price-earnings ratio = Market price per share ÷ Earnings per share= $6.41 ÷ $0.72 = 8.90 (rounded)g.Dividend payout ratio = Dividends per share* ÷ Earnings per share= $0.08 ÷ $0.72 = 11.1% (rounded)*Dividends per share = Common dividends ÷ Common shares (see above)= $4,000 ÷ 50,000 shares = $0.08 per share (rounded)h.Dividend yield ratio = Dividends per share* ÷ Market price per share= $0.08 ÷ $6.41 = 1.25% (rounded)*Dividends per share = Common dividends ÷ Common shares (see above)= $4,000 ÷ 50,000 shares = $0.08 per share (rounded)i.Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*= $1,042,000 ÷ 50,000 shares = $20.84 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $200,000 ÷ $4 per share = 50,000 shares

Marovich Corporation Has Provided the Following Financial Data

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Marovich Corporation Has Provided the Following Financial Data

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