Profitability Analysis

Albion Inc. provided the following information for its most recent year of operation. The tax rate is 40%.

Required:

1. Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio.

SalesCostofgoodssoldNetincomeInterestexpenseAssetsbeginningbalanceAssets-endingbalance$100,00045,00010,500350120,000126,000PreferreddividendsCommondividends(paidDecember31)CommonsharesoutstandingJanuary1Commonsharesoutstanding-December31AveragecommonstockholdersequityMarketpricepercommonshare$300$8,00030,000shares40,000shares$55,000$12