Homework 2 The San Pedro Products, Inc. 2018 and 2017 comparative income statement is below. In addition selected some of it). information from 2016 is also given just below the comparative income statement (because you will need San Antonio Products, Inc. Comparative Income Statement For the Years Ended December 31, 2018 and 2017 2018 2017 2016 161,000 90,000 41.000 12,500 8.500 9.000 Net Sales 187,000 Cost of Goods Sold 93,500 Selling and General Expenses 47,500 Interest Expense 12,000 Income Tax Expense 11,000 Net Income 23.000 Additional Information: Total Assets 209,000 Common Stockholders' Equity 95,000 Common Stock Dividends 14,000 Preferred Stock Dividends 3,500 Common Stock Shares Outstanding During Year 30,000 180,000 78,000 184,000 83,500 10,000 3,500 30,000 0 0 10,000 Requirements: (round calculations) 1. Calculate the profit margin ratio for 2018 and 2017 What is the formula? 2018_12.3% work area: 23,000 / 187,000 2017_82 work area: 2. Calculate the rate of return on total assets for 2018 and 2017. What is the formula? 2018 work area: (need 2016 info) 2017 11.8% work area: (9,000 + 12,500)/(180,000 +184.000)2 3. Calculate the rate of return on common stockholders' equity for 2018 and 2017. What is the formula? 2018_21.8% work area: work area: (need 2016 info) 4. Calculate the earnings per share for 2018 and 2017. What is the formula? (65 cents) 2018_65 work area: (23,000-3,500)/30,000 2017 10. work area: (need 2016 # shares for ave. so take 2016 # of shares + 2017 # of shares, then divide by 2) 2017 5. Calculate the 2018 dividend payout on common stock. What is the formula? Answer 72 work area: 6. Did the company's operating performance improve or deteriorate during 2018