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The comparative financial statements for Chinook Company are below Year 2 Year 1 Income statement Sales revenue $ 198,000 $ 169,000 Cost of goods sold
The comparative financial statements for Chinook Company are below
Year 2 | Year 1 | |
---|---|---|
Income statement | ||
Sales revenue | $ 198,000 | $ 169,000 |
Cost of goods sold | 114,000 | 100,800 |
Gross profit | 84,000 | 68,200 |
Operating expenses and interest expense | 56,800 | 53,400 |
Pretax income | 27,200 | 14,800 |
Income tax | 8,800 | 4,400 |
Net income | $ 18,400 | $ 10,400 |
Balance sheet | ||
Cash | $ 4,800 | $ 7,400 |
Accounts receivable (net) | 14,400 | 18,400 |
Inventory | 40,800 | 35,600 |
Property and equipment (net) | 46,200 | 38,800 |
Total assets | $ 106,200 | $ 100,200 |
Current liabilities (no interest) | $ 16,400 | $ 17,400 |
Long-term liabilities (interest rate: 10%) | 45,400 | 45,400 |
Common stock ($5 par value, 6,400 shares outstanding) | 32,000 | 32,000 |
Retained earnings | 12,400 | 5,400 |
Total liabilities and stockholders' equity | $ 106,200 | $ 100,200 |
2. Compute return on assets, total asset turnover, and the net profit margin for Year 2.
Note: Round your answers to 2 decimal places.
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