The following end-of-year amounts are from the financial statements of Konstan Corporation: total assets, $213,000; total liabilities,

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The following end-of-year amounts are from the financial statements of Konstan Corporation: total assets, $213,000; total liabilities, $86,000;

stockholders’ equity, $127,000; net sales, $391,000; cost of goods sold,

$243,000; operating expenses, $89,000; income taxes, $12,000; and dividends, $20,000. During the past year, total assets increased by $37,500.

Total stockholders’ equity was affected only by net income and dividends. Compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity

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Financial Accounting

ISBN: 9780547070025

9th Edition

Authors: Jr. Belverd E. Needles, Marian Powers

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