The following condensed information is reported by Sporting Collectibles. Required: 1. Calculate the following profitability ratios for
Question:
The following condensed information is reported by Sporting Collectibles.
Required:
1. Calculate the following profitability ratios for 2021:
a. Gross profit ratio.
b. Return on assets.
c. Profit margin.
d. Asset turnover.
e. Return on equity.
2. Determine the amount of dividends paid to shareholders in 2021.
Transcribed Image Text:
2021 2020 Income Statement Information Sales revenue $14,820,000 $9,400,000 Cost of goods sold 9,544,080 6,900,000 Net income 418,000 348,000 Balance Sheet Information Current assets $ 1,700,000 $1,600,000 Long-term assets 2,300,000 2,000,000 Total assets $ 4,000,000 $3,600,000 Current liabilities $ 1,300,000 $1,000,000 Long-term liabilities 1,400,000 1,400,000 Common stock 900,000 900,000 Retained earnings 400,000 з00,000 Total liabilities and stockholders' equity $ 4,000,000 $3,600,000
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Related Book For
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
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