Suppose selected comparative statement data for the giant bookseller Barnes

& Noble are presented here. All balance sheet data are as of the end of the fiscal year

(in millions).

2014 2013 Net sales $5,121.8 $5,286.7 Cost of goods sold 3,540.6 3,679.8 Net income 75.9 135.8 Accounts receivable 81.0 107.1 Inventory 1,203.5 1,358.2 Total assets 2,993.9 3,249.8 Total common stockholders’ equity 921.6 1,074.7 Instructions Compute the following ratios for 2014.

(a) Profit margin.

(b) Asset turnover.

(c) Return on assets.

(d) Return on common stockholders’ equity.

(e) Gross profit rate.AppendixLO1