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need to find the return on assets? also need to find the profit margin ? also asset turnover ? and the return on equity Exercise
need to find the return on assets? also need to find the profit margin ? also asset turnover ? and the return on equity
Exercise 12-6A Evaluate profitability ratios (LO12-4) The 2021 income statement of Adrian Express reports sales of $22,110,000, cost of goods sold of $12,950,000, and net income of $2,260,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $ 980,000 1,950,000 2,490,000 5,180,000 $10,600,000 $1,000,000 1,310,000 1,850,000 4,480,000 $8,640,000 $ 2,228,000 $1,928,000 2,652,eee 2,668,000 2,250,000 2,110,000 3,470, eee 1,934,600 $10,600,000 $8,640,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 15.5 times 35% Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Profitability Ratios Gross profit ratio 41.4%Step by Step Solution
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