P13-7 Analyzing Comparative Financial Statements Using Percentages and Selected Ratios LO 13-3, 13-4, 13-6

[The following information applies to the questions displayed below.]

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:

	2015			2014
Income statement:
Sales revenue	$	191,700	*	$	167,300
Cost of goods sold		112,200			101,200
Gross profit		79,500			66,100
Operating expenses and interest expense		57,700			54,700
Pretax income		21,800			11,400
Income tax		6,600			3,300
Net income	$	15,200		$	8,100
Balance sheet:
Cash	$	5,900		$	5,800
Accounts receivable (net)		15,600			17,100
Inventory		40,500			33,300
Operational assets (net)		45,100			38,000
	$	107,100		$	94,200
Current liabilities (no interest)	$	15,100		$	16,100
Long-term liabilities (9% interest)		43,200			43,200
Common stock (par $5)		28,100			28,100
Retained earnings		20,700			6,800
	$	107,100		$	94,200

g.	What was the return on assets?

h.	Compute the financial leverage percentage?