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The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data: One-third was credit sales. During Year 2,
The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data: One-third was credit sales. During Year 2, cash dividends amounting to $7,300 were declared and paid. Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Compute the following for year 2 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) 2-b. Income tax rate. (Round percentage answer to 1 decimal place (1.e., 0.124 should be entered as 12.4).) 2-c. Net profit margin ratio. Was it a good or poor indicator of performance? (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places (l.e.) 0.1243 should be entered as 12.43).) 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) 2-f. Return on assets. Assume that long-term debt Increased to $40,670 in month 1 of year 2 (Round intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 1243).) 2-g. Return on equity. (Round percentage answer to 2 decimal places (I.e., 0.1243 should be entered as 1243).) 2 -h. Financlal leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.)
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