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The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement Sales revenue Cost of

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The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement Sales revenue Cost of goods sold $190,500 113,100 $168,800 100,600 Gross profit Operating expenses and interest expense 77,400 56,300 68,200 53,300 Pretax income Income tax 21,100 7,600 14,900 3,800 Net Income $ 13,500 $ 11,100 Balance sheet Cash Accounts receivable (net) Inventory Operational assets (net) $ 5,400 15,600 41,800 45,800 $ 5.900 17,800 33,000 36,600 $108,600 $ 93,300 Current liabilities (no interest) Long-term liabilities (9% Interest) Common stock (par $5) Retained earnings $ 15,000 44.400 29,400 19,800 $ 16,000 44,400 29.400 3,500 $108,600 $ 93,300 *One-third was credit sals. Required: 1. Present component percentages for 2015 only. (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).) PRINCE COMPANY Income Statement At December 31, 2015 Component Percentages 2015 Sales revenue (the base amount) % Cost of goods sold % Gross profit on sales % Operating expenses % Pretax income % Income taxes % Net income % PRINCE COMPANY Balance Sheet At December 31, 2015 Component Percentages 2015 % % % % 0.0 % Cash Accounts receivable (net) Inventory Operational assets (net) Total assets (the base amount) Current liabilities Long-term liabilities (10% interest) Common stock ($5 par) Retained earnings Total liabilities and owners' equity (the base amount) % % % % 0.0 % 2. Respond to the following for 2015: (Round your answers to 1 decimal place.) a. What was the gross profit percentage? Gross profit % b. What was the income tax rate? Income tax rate % c. Compute the profit margin? Profit margin (net) % d. What percentage of total resources was invested in operational assets? Investment in operational assets % e. Compute the debt-to-equity ratio? Debt-to-equity f. What was the return on equity? Return on equity 94 g. What was the return on assets? Return on assets % h. Compute the financial leverage percentage? Financial leverage percentage %

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