McDougal Printing Inc. had sales totaling $40,000,000 in fiscal year 2019. Some ratios for the company are

Question:

McDougal Printing Inc. had sales totaling $40,000,000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested.

McDougal Printing Inc.
Year Ended December 31, 2019
Sales ..........................................................$40,000,000
Gross profit margin ..............................................80%
Operating profit margin ......................................35%
Net profit margin ...................................................8%
Return on total assets ........................................16%
Return on common equity ................................20%
Total asset turnover ...............................................2
Average collection period .........................62.2 days

Calculate values for the following:
a. Gross profits
b. Cost of goods sold

c. Operating profits
d. Operating expenses
e. Earnings available for common stockholders
f. Total assets
g. Total common stock equity
h. Accounts receivable

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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