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Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Asset turnover Computations Return on total assets Return on
Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Asset turnover Computations Return on total assets Return on stockholders' equity $8,250,000 [($5,785,000+ $5,595,000) + 2] ($786,300 +$127,000) + [($6,609,000+ $6,419,000) + 2] $786,300[($4,039,000+ $3,837,050) + 2] Return on common stockholders' equity ($786.300-$65,000) + [($3,551,500+ $3,409,440) + 2] ($786,300 $65,000) 250,000 shares Earnings per share on common stock Price-earnings ratio Dividends per share $35 + $3.05 $175,000+250,000 shares $0.70 $35 Dividend yield Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the L missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to place. If <5, round down and if a 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%. Comparative Income Statement For the Years Ended December 31, 20Y6 and 20Y5 Sales Cost of goods sold Gross profit Increase/(Decrease) 20Y6 20Y5 Amount Percentage $7.257,000 S (3,444,000) $3.813,000 Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute am missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If <5, round down and if a 5. round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1% Comparative Income Statement For the Years Ended December 31, 2010 and 20YS Increase/(Decrease) 2016 2015 Amount Percentage Sales $7.257,000 Cost of goods sold (3.444.000) Gross profit $3,013,000 Selling expenses $(1,451,000) Administrative expenses (1.237,500) (1.101,500) Total operating expenses $(2.552,500) Operating income $1,260,500 Other expense (interest) (120,600) Income before income tax expense $1.139.900 Income tax expanse (178.200) $961.700 Net income Final Questions TN Your accountant friend reveals that the company whose information you have been working on actually a company he is thinking of investing in What advice and insight do you have for your friend
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