Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ratios Compared with Industry Averages You are analyzing the performance of Lumite Corporation, a manufacturer of personal care products, for the most recent year. The
Ratios Compared with Industry Averages You are analyzing the performance of Lumite Corporation, a manufacturer of personal care products, for the most recent year. The following data are taken from the firm's latest annual report: Quick assets Inventory and prepaid expenses Other assets Total Assets Dec. 31, 2013 Dec. 31, 2012 $290,000 860,000 4,165,000 3,700,000 $5,400,000 $4,770,000 $330,000 985,000 Current liabilities 1096 Bonds payable 7% Preferred stock Common stock, $5 par value Retained earnings Total Liabilltles and Stockholders' Equity $540,000 $440,000 1,340,000 1340,000 900,000 1,800,000 370,000 $5,400,000 $4,770,000 900,000 1,900,000 800,000 In 2013, net sales amount to $8,800,000, net income is $695,000, and preferred stock dividends paid are S65,000. Required Calculate the following ratios for 2013. Round answers to two decimal places. 1. Return on sales 34.05 2. Return on assets 1,850,000 % 3. Return on common stockholders' equity 34.05 X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started