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Financial statements for Askew Industries for 2021 are shown below (in thousands): 2021 Income Statement Net sales $ 9,100 Cost of goods sold (6,325 )
Financial statements for Askew Industries for 2021 are shown below (in thousands):
2021 Income Statement | |||
Net sales | $ | 9,100 | |
Cost of goods sold | (6,325 | ) | |
Gross profit | 2,775 | ||
Operating expenses | (2,125 | ) | |
Interest expense | (210 | ) | |
Income tax expense | (176 | ) | |
Net income | $ | 264 | |
Comparative Balance Sheets | |||||||
Dec. 31 | |||||||
2021 | 2020 | ||||||
Assets | |||||||
Cash | $ | 610 | $ | 510 | |||
Accounts receivable | 610 | 410 | |||||
Inventory | 810 | 610 | |||||
Property, plant, and equipment (net) | 2,100 | 2,200 | |||||
$ | 4,130 | $ | 3,730 | ||||
Liabilities and Shareholders Equity | |||||||
Current liabilities | $ | 1,160 | $ | 910 | |||
Bonds payable | 1,450 | 1,450 | |||||
Common stock | 610 | 610 | |||||
Retained earnings | 910 | 760 | |||||
$ | 4,130 | $ | 3,730 | ||||
Required: Calculate the following ratios for 2021. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)
Asset turnover ratio:
Profit margin on sales:
Return on Equity Multiplier (using the DuPont framework)
Return on assets:
Return on Equity:
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