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
										Increase/(Decrease)
	20Y6						20Y5			Amount					Percentage
Sales								$7,287,000									%
Cost of goods sold								(3,444,000)									%
Gross profit								$3,843,000									%
Selling expenses								$(1,457,600)									%
Administrative expenses		(1,242,000)						(1,106,000)									%
Total operating expenses								$(2,563,600)									%
Operating income								$1,279,400
Other expense (interest)								(120,600)									%
Income before income tax expense
Income tax expense
Net income