Question
RQM Manufacturing Corporation Selected Financial Data December 31, 2015 Net Sales (Revenue) $1,800,000 Cost of goods sold 1,080,000 Gross profit 720,000 Operating expenses 315,000 Net
RQM Manufacturing Corporation Selected Financial Data
December 31, 2015
Net Sales (Revenue) | $1,800,000 |
Cost of goods sold | 1,080,000 |
Gross profit | 720,000 |
Operating expenses | 315,000 |
Net operating income | 405,000 |
Net income | 195,000 |
Total stockholders equity | 750,000 |
Total assets | 1,000,000 |
Cash flow from operating activities | 25,000 |
#5 Calculate RQMs gross profit percentage or gross margin
#6 Calculate RQMs ROA (return on assets)
#7 Calculate RQMs ROE (return on equity)
#8 Calculate RQMs ROS (return on sales)
#9 - Can you draw any conclusions about what the ratios tell you about RQM? What other information would be helpful for us to really figure out how RQM is doing?
#10 - What is the formula that can be used to measure profit center earnings?
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