Using the following information, analyze the profitability ratios of Sybaritic Corporation for 2020. Sybaritic Corporation Income Statement For the Year Ended September 30, 2020 and 2019 2020 2019 Sales $906,000 $854,100 Less: Sales Returns and Allowances 32,500 30,550 Net Sales 873,500 823,550 Cost of Goods Sold 429.000 389,000 Gross Profit on Sales 444,500 434,550 Operating Expenses Selling Expenses 55,500 52,400 General and Administrative Expenses 40,900 37.900 Total Operating Expenses 96,400 90,300 Bond Interest Expense 39,000 39,000 Income Tax Expense 42,200 39,400 Net Income after Income Taxes $266,900 $265,850 It is assumed that all sales are on credit. 2828 2019 $ 98,000 305,000 334,000 58,500 795,500 88,888 280,500 300,000 40, 500 709,000 Sybaritid Corporation Balance Sheet September 30, 2020 and 2019 Assets Current Assets Cash Accounts Receivable (Net) Inventory Prepaid Expenses Total Current Assets Property, plant, and Equipment Buildings (Net) Equipment (Net) Land Total Property, Plant, and Equipment Total Assets Liabilities and Stockholders: Equity Current Liabilities Accounts Payable Other Current Liabilities Total Current Liabilities Long-Term Liabilities Bonds Payable Total Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock ($i par value, 50,000 shares issued and outstanding) Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity 890,000 340,000 440,000 1,670,000 $2,465,500 759,000 300,000 440,000 1,499,000 $2,208,000 $ $ 98,000 84,000 182,000 90,000 78,000 168,000 390,000 390,000 572,000 390,000 390,000 558,000 1,428,000 465,500 1,893,500 $2,465,500 1,428,000 222.000 1,650,000 $2,208,000 Market price per share of Sybaritic stock is $57. 1. Compute the rate of return on net sales. Assume that the company uses net income after income tax to calculate the rate. (Round your answer to 2 decimal places.) 2. Compute the rate of return on common stockholders' equity (Round your answer to 2 decimal places.) 3. Compute the earnings per share of common stock. (Round your answer to 2 decimal places.) 4. Compute the price earnings ratio. (Round your intermediate calculation and final answer to 2 decimal places.) 5. Is yield on common stock applicable or not applicable? 6. Compute the rate of return on total assets. (Round your answer to 2 decimal places.) 7. Compute the asset turnover. (Round your answer to 2 decimal places.) % 96 1. Rate of return on net sales 2. Rate of retum on common stockholders' equity 3. Earnings per share of common stock 4. Price earnings ratio 5. Is yield on common stock 6. Rate of retum on total assets 7. Asset turnover to 1 % to 1
