Question
Analyzing profitability The CJ, Inc., comparative income statement follows. The 2018 data are given as needed. CJ, INC. Comparative Income Statement Years Ended December 31,
| Analyzing profitability | |||||
| The CJ, Inc., comparative income statement follows. The 2018 data are given as needed. | |||||
| CJ, INC. | |||||
| Comparative Income Statement | |||||
| Years Ended December 31, 2020 and 2019 | |||||
| (Dollars in thousands) | 2020 | 2019 | 2018 | ||
| Net sales | 176000 | 160000 |
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| Cost of goods sold | 93400 | 86500 |
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| Selling and general expenses | 46000 | 41000 |
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| Interest expense | 9000 | 10300 |
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| Income tax expense | 10200 | 9600 |
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| Net income | 17400 | 12600 |
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| Additional data: |
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| Total assets | 203000 | 190000 | 175000 | ||
| Common stockholders equity | 96600 | 90100 | 79400 | ||
| Preferred dividends | 3500 | 3500 | 0 | ||
| Common shares outstanding during the year | 20500 | 20500 | 18000 | ||
| Requirements | |||||
| 1. Calculate the rate of return on net sales. | |||||
| 2. Calculate the rate of return on total assets. | |||||
| 3. Calculate the asset turnover ratio. | |||||
| 4. Calculate the rate of return on common stockholders equity. | |||||
| 5. Calculate the EPS. | |||||
| 6. Calculate the 2020 dividend payout on common stock. | |||||
| 7. Did the companys operating performance improve or deteriorate during 2020? | |||||
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