Profitability Analysis Albion Inc. provided the following information for its most recent year of operation. The tax rate is 40%. Sales Cost of goods sold Net income $100,000 45.000 10.500 350 120.000 126.000 Market price per common share Preferred dividends Common dividends (paid December 31) Common shares outstanding-January 1 Common shares outstanding-December 31 Average common stockholders' equity $300 $8,000 30,000 shares 40,000 shares $55,000 $12 Interest expense Assets-beginning balance Assets-ending balance 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. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain. 3. What is the difference between return on sales and return on assets? How would you use/interpret these two ratios to analyze the company's financial statement? 4. Based on your computation of Return on Stockholder's equity and Earnings per share, are you. satisfied with the results? Why? 5. Using Dividend Yield and Dividend Payout Ratio, do you think this investing in Albion Inc. is a good decision? Why?

Profitability Analysis Abion Ine. 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. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain. 3. What is the difference between return on sales and return on assets? How would you use/interpret these two ratios to analyze the company's financial statement? 4. Based on your computation of Return on Stockholder's equity and Earnings per share, are you satisfied with the results? Why? 5. Using Dividend Yield and Dividend Payout Ratio, do you think this investing in Albion Inc. is a good decision? Why? Profitability Analysis Abion Ine. provided the following information for its most recent yeur 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, (1) dividend yield, and (g) dividend payout ratio. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain. 3. What is the difference between return on sales and return on assets? How would you use/interpret these two ratios to analyze the company's financial statement? 4. Based on your computation of Return on Stockholder's equity and Earnings per share, are you satisfied with the results? Why? 5. Using Dividend Yield and Dividend Payout Ratio, do you think this investing in Albion Inc. is a good decision? Why