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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

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

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