Question
Financial statements for Askew Industries for 2018 are shown below (in $000s): 2018 Income Statement Sales $ 8,700 Cost of goods sold (6,175 ) Gross
Financial statements for Askew Industries for 2018 are shown below (in $000s): 2018 Income Statement Sales $ 8,700 Cost of goods sold (6,175 ) Gross profit 2,525 Operating expenses (1,875 ) Interest expense (150 ) Tax expense (200 ) Net income $ 300 Comparative Balance Sheets Dec. 31 2018 2017 Assets Cash $ 550 $ 450 Accounts receivable 550 350 Inventory 750 550 Property, plant, and equipment (net) 1,500 1,600 $ 3,350 $ 2,950 Liabilities and Shareholders Equity Current liabilities $ 800 $ 550 Bonds payable 1,150 1,150 Paid-in capital 550 550 Retained earnings 850 700 $ 3,350 $ 2,950 Required: Calculate the following ratios for 2018. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) 5. Asset turnover ratio 6. Profit margin on sales 7. Return on Assets 8. Return on shareholders Equity 9. Equity multiplier 10. Return on Shareholders Equity ( using the Dupont framework)
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