Question
Exercise 13-14 Return Ratios and Leverage The following selected data are taken from the financial statements of Evergreen Company: Required: 1. Compute the following ratios
Exercise 13-14 Return Ratios and Leverage The following selected data are taken from the financial statements of Evergreen Company: Required: 1. Compute the following ratios for Evergreen Company: Return on sales Asset turnover (Assume that total assets at the beginning of the year were $1,600,000.) Return on assets Return on common stockholders' equity (Assume that the only changes in stockholders' equity during the year were from the net income for the year and dividends on the preferred stock.) When computing percentage amounts, carry out calculations to 4 decimal places, but enter your answers to two decimal places; for example, .17856 rounds to .1786 and would be entered as 17.86. a. Return on sales % b. Return on assets % c. Return on common stockholders' equity %
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