Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Villa, Inc.'s comparative income statement follows. The 2023 data are given as needed. (Click the icon to view the data.) Read the requirements. Requirement 1.

Villa, Inc.'s comparative income statement follows. The 2023 data are given as needed. (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the profit margin ratio for 2025 and 2024. Begin by selecting the formula to calculate the profit margin ratio. Profit margin ratio Net income + Net sales revenue Now, calculate the profit margin ratio for 2025 and 2024. (Round your answers to one tenth of a percent, XX, and do not enter the %. For example, enter 10.1% as 10.1.) Profit margin ratio % 2025 2024 12.5 % 2.6% Requirement 2. Calculate the rate of return on total assets for 2025 and 2024, Begin by selecting the formula to calculate the rate of return on total assets. Rate of return on total assets - (Net income Interest expense) Average total assets Now, calculate the rate of return on total assets for 2025 and 2024. (Round your answers to one tenth of a percent. X.X, and do not enter the %. For example, enter 16 404041 Enter any number in the edit fields and then click Check Answer. Clear All Check Answer Villa, Inc.'s comparative income statement follows. The 2023 data are given as needed. (Click the icon to view the data.) Read the requirements Now, calculate the profit margin ratio for 2025 and 2024. (Round your answers to one tenth of a percent, XX, and do not enter the %. For example, enter 10.1% as 10.1.) 2025 2024 Profit margin ratio % 12.5 % 2.0 % Requirement 2. Calculate the rate of return on total assets for 2025 and 2024. Begin by selecting the formula to calculate the rate of return on total assets. Rate of return on total assets (Net income Interest expense) + Average total assets + Now, calculate the rate of return on total assets for 2025 and 2024. (Round your answers to one tenth of a percent, XX, and do not enter the %. For example, enter 10.1% as 10.1.) 2025 2024 Rate of return on total assets % 12.05% 2.28 % Enter any number in the edit fields and then click Check Answer. Table Net Sales Revenue Villa, Inc. Comparative Income Statement Years Ended December 31, 2025 and 2024 Cost of Goods Sold Selling and Administrative Expenses Interest Expense Income Tax Expense 2025 2024 2023 $ 188,000 $ 151,000 95,000 85,500 49,500 41,000 8,500 9,500 11,500 11,000 $ 23,500 $ 4,000 Net Income Additional data: Total Assets $ 205,000 $ 185,000 $ 166,000 Common Stockholders' Equity 93,000 83,500 80,000 Preferred Dividends 2,500 2,500 0 Common Shares Outstanding During the Year 25,000 25,000 10,000 Print Done i Requirements - 1. Calculate the profit margin ratio for 2025 and 2024. 2. Calculate the rate of return on total assets for 2025 and 2024. 3. Calculate the asset turnover ratio for 2025 and 2024. 4. Calculate the rate of return on common stockholders' equity for 2025 and 2024. 5. Calculate the earnings per share for 2025 and 2024. 6. Calculate the 2025 dividend payout on common stock. Assume dividends per share for common stock are equal to $0.46 per share. 7. Did the company's operating performance improve or deteriorate during 2025? Print Doneimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions