Question
Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover $8,280,000 [($5,781,000 + $5,591,000) 2] Return
Profitability Measures
Match each computation to one of the profitability measures in the table.
Profitability Measures |
| Computations |
Asset turnover |
| $8,280,000 [($5,781,000 + $5,591,000) 2] |
Return on total assets |
| ($801,420 + $127,000) [($6,605,000 + $6,415,000) 2] |
Return on stockholders' equity |
| $801,420 [($4,055,000 + $3,852,250) 2] |
Return on common stockholders' equity |
| ($801,420 $65,000) [($3,567,500 + $3,424,800) 2] |
Earnings per share on common stock |
| ($801,420 $65,000) 250,000 shares |
Price-earnings ratio |
| $35 $3.05 |
Dividends per share |
| $175,000 250,000 shares |
Dividend yield |
| $0.70 $35 |
Comparative Income Statement For the Years Ended December 31, 20Y6 and 20Y5 | |||||||||||||||||
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| Increase/(Decrease) | ||||||||||||||
| 20Y6 | 20Y5 | Amount | Percentage | |||||||||||||
Sales |
|
|
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| $7,287,000 |
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| % | |||||
Cost of goods sold |
|
|
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| (3,444,000) |
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| % | |||||
Gross profit |
|
|
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| $3,843,000 |
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| % | |||||
Selling expenses |
|
|
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| $(1,457,600) |
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| % | |||||
Administrative expenses |
| (1,242,000) |
|
| (1,106,000) |
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| % | |||||
Total operating expenses |
|
|
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| $(2,563,600) |
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| % | ||||||
Operating income |
|
|
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| $1,279,400 |
|
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Other expense (interest) |
|
|
|
| (120,600) |
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| % | |||||
Income before income tax expense |
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Income tax expense |
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Net income |
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