#8

Income after taxes..490,620 $ 156,910 For each year, compute the following and indicate whether it is increasing or decreasing profitability in 20X2 as indicated by the ratio: Cost of goods sold to sales. a. b. Selling and administrative expense to sales. c. Interest expenses to sales. 8. Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000. a. What is the firm's return on assets? b. What is its return on stockholders' equity? c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)? 9. Network Communications has total assers of $1,500,000 and current assets of $612,000. It turns over its fixed asset: times a year. It has $319,000 of debt Its return on sales is 8 percent. What is ins return on stockholders' equity? 10. Fondren Machine Tools has total assets of $3,310,000 and current assets of $879,000. It turns over its fixed assets 3.6 times per year. Its return on sales is 4.8 percent. It has $1,750,000 of debt. What is its return on stockholders' equity 11. Baker Oats had an asset turnover of 1.6 times per year