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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 $ 190,000

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:

2015 2014
Income statement:
Sales revenue $ 190,000 * $ 167,000
Cost of goods sold 112,000 100,000
Gross profit 78,000 67,000
Operating expenses and interest expense 56,000 53,000
Pretax income 22,000 14,000
Income tax 8,000 4,000
Net income $ 14,000 $ 10,000
Balance sheet:
Cash $ 4,000 $ 7,000
Accounts receivable (net) 14,000 18,000
Inventory 40,000 34,000
Operational assets (net) 45,000 38,000
$ 103,000 $ 97,000
Current liabilities (no interest) $ 16,000 $ 17,000
Long-term liabilities (10% interest) 45,000 45,000
Common stock (par $5) 30,000 30,000
Retained earnings 12,000 5,000
$ 103,000 $ 97,000

Respond to the following for 2015: (Round your answers to 1 decimal place.)

a. What was the gross profit percentage?

b. What was the income tax rate?

c. Compute the profit margin?

d. What percentage of total resources was invested in operational assets?

e. Compute the debt-to-equity ratio?

f. What was the return on equity?

g. What was the return on assets?

h. Compute the financial leverage percentage?

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