Question 3 Chapter 13/14

Ratios Analyzing Firm Profitability The following information is available for Buhler Company:

Annual Data	2013	2012
Net sales	$8,900,000	$8,300,000
Gross profit on sales	3,353,000	3,036,000
Net income	567,600	488,000

Year-End Data	Dec. 31, 2013	Dec. 31, 2012
Total assets	$6,800,000	$6,400,000
Stockholders' equity	3,800,000	3,200,000

Calculate the following ratios for 2013:

Round answers to one decimal place, unless otherwise noted. a. Gross profit percentage Answer

% b. Return on sales Answer

% c. Asset turnover (Round answer to two decimal places.) Answer

d. Return on assets Answer

% e. Return on common stockholders' equity (Buhler Company has no preferred stock.) Answer

%