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Exercise 4-27 (Algo) Profitability ratios (L04-10) The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: $ in thousands) 2021 2020

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Exercise 4-27 (Algo) Profitability ratios (L04-10) The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: $ in thousands) 2021 2020 Income statement information $5,300 198 $4,300 126 Net sales Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $ 810 1,190 $2,000 $ 580 760 500 160 $2,000 $ 760 840 $1,600 $ 230 760 500 110 $1,600 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a. Profit margin on sales 1b. Return on assets tc. Return on equity 2 Dividends paid % % % Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs (L04-1, 4-3, 4-4) Esquire Comic Book Company had income before tax of $1,500,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before tax loss on disposal was $390,000. The division generated before tax income from operations from the beginning of the year through disposal of $600,000 2. The company incurred restructuring costs of $55,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: 0 Income (loss) on discontinued operations Net Income (loss)

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