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please help with Return on Total asset and return on common shareholder's equity. Include with working notes if possible. thanks Refer the following table. Tia's
please help with Return on Total asset and return on common shareholder's equity. Include with working notes if possible. thanks
Refer the following table. Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) 2020 2019 Cash $ 217 $ 605 Accounts receivable (net) 292 329 Plant and equipment (net) 1,650 Accounts payable 72 148 Long-term notes payable 977 1,297 Preferred shares 177 Common shares 657 657 Retained earnings 84 305 1,458 2018 $ 630 148 1,946 320 1,457 177 657 113 177 The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) 2020 2019 2018 Net sales $4,260 $6,580 $6,900 Cost of goods sold 2,829 4,453 4,677 Gross profit $1,431 $2,127 $2,223 Operating expenses: Depreciation expense $ 330 $ 330 $ 330 Other expenses 426 1,282 1,478 Total operating 756 1,612 1,808 expenses Profit from operations $ 675 $ 515 $ 415 Interest expense 92 111 121 Income tax expense 181 133 98 Profit $ 402 $ 271 $ 196 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2020. Also identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the industry average. (Round the final answer to 2 decimal places. Input all positive values.) 2020 9.44 % 1. Profit margin 2. Gross profit ratio 33.59% 3. Return on total assets Industry F/U Average 14 % Unfavourable 18 % Favourable 20% (Unfavourable 32.7 % Favourable $ 8.63 Unfavourable $ 15.00 Unfavourable % 4. Return on common shareholders' equity % 5. Book value per common share $ 2.32 6. Book value per preferred share $ 2.21 7. Earnings per share 1.13 $ 1.79 UnfavourableStep by Step Solution
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