Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following condensed information was reported by a company for the current year and the previous year: ($ in thousands) Current Year Previous Year Income
The following condensed information was reported by a company for the current year and the previous year:
($ in thousands) | ||
---|---|---|
Current Year | Previous Year | |
Income statement information | ||
Net sales | $ 5,400 | $ 4,400 |
Net income | 228 | 128 |
Balance sheet information | ||
Current assets | $ 820 | $ 770 |
Property, plant, and equipment (net) | 1,280 | 930 |
Total assets | $ 2,100 | $ 1,700 |
Current liabilities | $ 560 | $ 210 |
Long-term liabilities | 770 | 770 |
Common stock | 600 | 600 |
Retained earnings | 170 | 120 |
Liabilities and shareholders equity | $ 2,100 | $ 1,700 |
Required:
- Determine the following ratios for the current year:
Note: Round your percentage answers to 1 decimal place.
- Determine the amount of dividends paid to shareholders during the current year.
Note: Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.
\begin{tabular}{|l|l|l|} \hline 1a. Profit margin on sales & & % \\ \hline 1b. Return on assets & & % \\ \hline 1c. Return on equity & & % \\ \hline 2. Dividends paid & & \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started