[The following information applies to the questions displayed below.]

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

	2015			2014
Income statement:
Sales revenue	$	191,100	*	$	167,200
Cost of goods sold		113,200			101,400
Gross profit		77,900			65,800
Operating expenses and interest expense		57,400			54,400
Pretax income		20,500			11,400
Income tax		6,400			3,200
Net income	$	14,100		$	8,200
Balance sheet:
Cash	$	4,400		$	6,000
Accounts receivable (net)		15,200			16,600
Inventory		41,800			33,900
Operational assets (net)		45,500			36,900
	$	106,900		$	93,400
Current liabilities (no interest)	$	15,000		$	16,000
Long-term liabilities (10% interest)		43,400			43,400
Common stock (par $5)		29,800			29,800
Retained earnings		18,700			4,200
	$	106,900		$	93,400

*One-third was credit sales.

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)	100.0	%
Cost of goods sold		%
Gross profit on sales	40.8	%
Operating expenses	30.0	%
Pretax income		%
Income taxes		%
Net income		%

PRINCE COMPANY
Balance Sheet
At December 31, 2015
	Component Percentages 2015
Cash		%
Accounts receivable (net)		%
Inventory		%
Operational assets (net)		%
Total assets (the base amount)	0.0	%
Current liabilities		%
Long-term liabilities (10% interest)		%
Common stock ($5 par)		%
Retained earnings		%
Total liabilities and owners' equity (the base amount)	0.0	%

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

a.

What was the gross profit percentage?

Gross profit

40.8

%

b.

What was the income tax rate?

Income tax rate

31.2

%

c.

Compute the profit margin?

Profit margin (net)

%

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

Investment in operational assets

42.6

%

e.

Compute the debt-to-equity ratio?

	Debt-to-equity

f.	What was the return on equity?

Return on equity

%

g.	What was the return on assets?

Return on assets

%

h.	Compute the financial leverage percentage?

Financial leverage percentage

%