The management of Sioning Consumer Products Company is preparing its plans for the year 1991. The average assets to be employed for the year are estimated at P2,600.000 with 20% of this amount borrowed at no interest cost. Material and labor cost for the year is budgeted at 4,000,000 while operating cost is estimated atP1,500,000. All sales are to be billed at P162.5% of material and labor cost. Income tax rate is at the average of 35% of income before income tax.

1. What is the estimated rate of return on sales for 1991?
2. 10%
3. 12.5%
4. 14.29%
5. 27.86%

1. What is the estimated rate of return on average total assets for 1991?
   1. 20%
   2. 25%
   3. 31.25%
   4. 40.50%

1. What is the expected asset turnover for 1991?
   1. 1.50 times
   2. 2.5 times
   3. 3.36 times
   4. 3.75 times

1. What is the rate of return on stockholders equity for 1991?
   1. 20%
   2. 25%
   3. 31.25%
   4. 40.50%