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Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover Return on total assets Return on
Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover Return on total assets Return on stockholders' equity $8,270,000 [($5,785,000+ $5,595,000) 2) ($796,380 + $127,000) [($6,609,000+ $6,419,000) 2) $796,380+[($4,079,000+ $3,875,050) 2] Return on common stockholders' equity ($796,380 - $65,000) [($3,591,500 + $3,447,840) 2] Earnings per share on common stock Price-earnings ratio Dividends per share Dividend yield ($796,380 $65,000) 250,000 shares $35 $3.05 $175,000 250,000 shares $0.70 $35 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 any 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 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 Increase/(Decrease) 20Y6 20Y5 Amount Percentage $7,277,000 % (3,444,000) Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income $3,833,000 $(1,455,400) (1,240,500). (1,104,500) $(2,559,900) $1,273,100 $ Other expense (interest) (120,600) Income before income tax expense $1,152,500 Income tax expense (180,720) Net income $971,780 do do do do do do do do do do % % % % % %
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