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calculate only the following ratios (round to two decimal places): current ratio profit margin (as a percentage) return on assets (as a percentage) return on

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calculate only the following ratios (round to two decimal places): current ratio profit margin (as a percentage) return on assets (as a percentage) return on equity (as a percentage) asset turnover debt to equity ratio

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5 Financial Ratios: Performance Measures E 11. The simplified balance sheet and income statement for a corporation appear below Balance Sheet December 31, 2011 Liabilities Assets Current assets $ 50,000 $110,000 Current liabilities Investments 20,000 Long-term liabilities 60,000 293,000 Total liabilities $110,000 Property, plant, and equipment Intangible assets 37,000 Stockholders' Equity Common stock $200,000 Retained earnings 150,000 Total stockholders' equity Total assets $350,000 $460,000 Total liabilities and stockholders equity $460,000 Income Statement For the Year Ended December 31, 2011 $830,000 Net sales 500,000 Cost of goods sold $330,000 Gross margin 260,000 Operating expenses Income before income taxes Income taxes $ 70,000 10,000 $ 60,000 Net income Total assets and stockholders' equity at the beginning of 2011 were $360,000 and $280,000, respectively. Cash flows from operating activities were $72,000. Compute the following profitability measures: (1) profit margin, (2) asset turnover, (3) return on assets, (4) cash flow yield, (5) cash return on assets, (6) debt to equity ratio, and (7) return on equity. (Note: Round to one decimal place.)

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