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selected data (in millions): Annual amounts: 2020 2019 2018 Net income 90 60 25 Gross margin on sales 520 380 200 Cost of goods sold
selected data (in millions): Annual amounts: 2020 2019 2018 Net income 90 60 25 Gross margin on sales 520 380 200 Cost of goods sold 980 620 300 Operating expenses 380 295 165 Sales 1500 1000 500 Income tax expense 50 25 10 Dividend declared and paid 35 15 5 End of year amounts: Long term assets Long term debt Current liabilities Cash Accounts receivable Merchandise inventory Share capital 240 220 180 85 65 585 65 40 35 20 5 10 85 70 40 120 85 60 205 55 10 During each of the three years, 10 million shares of common stock were outstanding. Assume that all sales were on account and the applicable market prices per share of stock were 90 for 2019 and 117 for 2020. Required: (a) Compute each of the following for each of the last two years, 2020 and 2019: Net Profit Margin Return on Stockholders' Fund [ROSF] i. ii. iii. Current Ratio iv. Gearing ratio V. Price-Earning Ratio
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