The following selected information is for Xtreme Corporation: Instructions (a) Calculate the gross profit margin, profit margin,
Question:
Instructions
(a) Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on equity ratios for 2014 and 2013.
(b) Indicate whether each of the profitability ratios calculated in (a) is better or worse in 2014?
Transcribed Image Text:
2013 2014 $350,000 133,500 500,000 375,000 33,500 2012 Total assets Total shareholders' equity Net sales Cost of goods sold Profit 275,000 $274467 50,000 300,000 180,000 20,000 100,000 400,000 290,000 30,000
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a in thousands 2014 2013 Gross profit margin 500 375 250 400 290 275 500 400 Profit margin 335 67 30...View the full answer
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Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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