Companies, a home improvement store chain, reported the following summarized figures:

LOADING...

(Click

the icon to view the income statement.)

LOADING...

(Click

the icon to view the balance sheets.)

Triumph's

has

20,000

common shares outstanding during

2024.

Read the

requirements

LOADING...

.

Question content area bottom

Part 1

Requirement 1. Compute the profit margin ratio for

Triumph's

Companies for

2024.

Begin by selecting the formula to calculate

Triumph's

Companies' profit margin ratio. Then enter the amounts and calculate the profit margin ratio for

2024.

(Round your answer to one tenth of a percent, X.X%.)

=

Profit margin ratio

Part 2

=

%

Part 3

Requirement 2. Compute the rate of return on total assets for

2024.

Begin by selecting the formula to calculate

Triumph's

Companies' rate of return on total assets. Then enter the amounts and calculate the rate of return on total assets for

2024.

(Round your answer to one tenth of a percent, X.X%.)

(

+

)

=

Rate of return on total assets

Part 4

(

+

)

=

%

Part 5

Requirement 3. Compute the asset turnover ratio for

2024.

Begin by selecting the formula to calculate

Triumph's

Companies' asset turnover ratio. Then enter the amounts and calculate the assets turnover ratio for

2024.

(Round your answers to two decimal places, X.XX.)

=

Asset turnover ratio

Part 6

=

Part 7

Requirement 4. Compute the rate of return on common stockholders' equity for

2024.

Begin by selecting the formula to calculate

Triumph's

Companies' rate of return on common stockholders' equity. Then enter the amounts and calculate the rate of return on common stockholders' equity for

2024.

(Abbreviation used: Avg. common SE = average common stockholders' equity. Complete all input boxes. Enter "0" for balances with a zero value. Round your answer to one tenth of a percent, X.X%.)

							Rate of return on common
(		-		)		=	stockholders' equity

Part 8

(

-

)

=

%

Part 9

Requirement 5. Are these rates of return strong or weak? Explain your reasoning. (Assume the following industry averages: profit margin ratio = 22.8%, rate of return on total assets = 10.3%, asset turnover ratio = .54, rate of return on common stockholders' equity = 10.3%.

These rates of return are

average

strong

weak

considering that

average companies present much higher rates of return.

average companies present much lower rates of return.

average companies present similar rates of return.

Triumph's Companies
Income Statement
Years Ended May 31, 2024 and 2023
	2024	2023
Net Sales Revenue	$42,400	$42,000
Cost of Goods Sold	20,800	28,600
Interest Expense	200	140
All Other Expenses	6,200	7,800
Net Income	$15,200	$5,460

Triumph's Companies

Balance Sheet

May 31, 2024 and 2023

Assets

Liabilities

2024

2023

2024

2023

Cash

$2,000

$1,300

Total Current Liabilities

$23,000

$13,100

Short-term Investments

25,000

11,000

Long-term Liabilities

13,900

12,700

Accounts Receivable

7,400

5,700

Total Liabilities

36,900

25,800

Merchandise Inventory

7,300

7,200

Stockholders' Equity

Other Current Assets

9,000

2,300

Common Stock

9,000

9,000

Total Current Assets

50,700

27,500

Retained Earnings

38,800

19,700

All Other Assets

34,000

27,000

Total Equity

47,800

28,700

Total Assets

$84,700

$54,500

Total Liabilities and Equity

$84,700

$54,500