Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Match each computation to one of the profitability measures in the table. Profitability Measures Asset turnover Computations $8,250,000 = [($5,781,000 + $5,591,000) = 2] ($
Match each computation to one of the profitability measures in the table. Profitability Measures Asset turnover Computations $8,250,000 = [($5,781,000 + $5,591,000) = 2] ($ 786,300 + $127,000) = [($6,605,000 + $6,415,000) = 21 Return on total assets Return on stockholders' equity $786,300 = [($4,035,000 + $3,833,250) = 21 Return on common stockholders' equity ($786,300 $65,000) = [($3,547,500 + $3,405,600) = 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 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 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Increase/(Decrease) 2016 2015 Amount Percentage Sales $7,257,000 % Cost of goods sold (3,444,000) % Gross profit $ $3,813,000 $ % Selling expenses $(1,451,000) % Administrative expenses (1,237,500) (1,101,500) % Total operating expenses $(2,552,500) % Operating income $1,260,500 $ % Other expense interest) (120,600) % Income before income tax expense $ $1,139,900 % Income tax expense (178,200) % Net income $ $961,700 $ %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started