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Identify the amounts in the Liquidity and Solvency Measures panel and the Profitability Measures panel that are balance sheet items and enter them accordingly. Profitability
Identify the amounts in the Liquidity and Solvency Measures panel and the Profitability Measures panel that are balance sheet items and enter them accordingly. Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover $8,250,000 = [($5,783,000 + $5,593,000) = 2] Return on total assets ($ 786,300 + $127,000) = [($6,607,000 + $6,417,000) = 2] Return on stockholders' equity $786,300 = [($4,077,000 + $3,873,150) - 2] Return on common stockholders' equity ($786,300 - $65,000) = [($3,589,500 + $3,445,920) = 2] Earnings per share on common stock ($786,300 - $65,000) 250,000 shares Price-earnings ratio $35 - $3.05 Dividends per share $175,000 - 250,000 shares Dividend yield $0.70 = $35 Feedback -Check My Work Look for patterns in the computations and match them to ratios that are related to each other. Identify the amounts in the computations and consider how they are related to amounts in other computations. Note that two of the computations use shares. Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If
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