Selected Current Year End Financial Information for a Company Is

Essay

Selected current year end financial information for a company is presented below. Calculate the following company ratios:
(a) Profit margin.
(b) Total asset turnover.
(c) Return on total assets.
(d) Return on common stockholders' equity (assume the company has no preferred stock).
Net income……………………………….. $ 325,000
Net sales………………………………….. 4,700,000
Total liabilities, beginning-year………….. 550,000
Total liabilities, end-of-year……………… 530,000
Total stockholders' equity, beginning-year.
760,000
Total stockholders' equity, end-of-year….. 745,000