Problem 3-7 Profitability Ratios (LG3-4)

Maggies Skunk Removal Corp.s 2015 income statement listed net sales of $12.8 million, gross profit of $7.60 million, EBIT of $5.9 million, net income available to common stockholders of $3.5 million, and common stock dividends of $1.5 million. The 2015 year-end balance sheet listed total assets of $52.8 million and common stockholders' equity of $21.3 million with 2.0 million shares outstanding.

Calculate the profit margin. (Round your answer to 2 decimal places.)

Profit margin

%

Calculate the profit margin. (Round your answer to 2 decimal places.)

Gross profit margin

%

Calculate the profit margin. (Round your answer to 2 decimal places.)

Operating profit margin

%

Calculate the basic earnings power. (Round your answer to 2 decimal places.)

Basic earnings power

%

Calculate the return on assets. (Round your answer to 2 decimal places.)

Return on assets

%

Calculate the return on equity. (Round your answer to 2 decimal places.)

Return on equity

%

Calculate the dividend payout. (Round your answer to 2 decimal places.)

Dividend payout

%