Win's Companies, a home improvement store chain, reported the following summarized figures:

Win's Companies
Income Statement
Years Ended May 31, 2016 and 2015
	2016	2015
Net Sales	$51,200,000	$38,800,000
Cost of Goods Sold	28,400,000	28,600,000
Interest Expense	500,000	280,000
All Other Expenses	6,700,000	7,100,000
Net Income	$15,600,000	$2,820,000

Win's Companies
Balance Sheet
May 31, 2016 and 2015
Assets					Liabilities
		2016	2015			2016	2015
Cash		$2,400,000	$1,700,000		Total Current Liabilities	$28,000,000	$13,300,000
Short-term Investments		27,000,000	11,000,000		Long-term Liabilities	13,200,000	11,400,000
Accounts Receivable		7,300,000	5,700,000		Total Liabilities	41,200,000	24,700,000
Merchandise Inventory		7,300,000	9,700,000		Stockholders' Equity
Other Current Assets		6,000,000	2,500,000		Common Stock	11,000,000	11,000,000
Total Current Assets		50,000,000	30,600,000		Retained Earnings	25,800,000	20,900,000
All Other Assets		28,000,000	26,000,000		Total Equity	36,800,000	31,900,000
Total Assets		$78,000,000	$56,600,000		Total Liabilities and Equity	$78,000,000	$56,600,000

Requirement 1. Compute the profit margin ratio for Win's Companies for 2016.

Begin by selecting the formula to calculate Win's Companies' profit margin ratio. Then enter the amounts and calculate the profit margin ratio for 2016.

(Round your answer to one tenth of a percent, X.X%.)

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Profit margin ratio

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%

Requirement 2. Compute the rate of return on total assets for 2016.

Begin by selecting the formula to calculate Win's Companies' rate of return on total assets. Then enter the amounts and calculate the rate of return on total assets for 2016.

(Round your answer to one tenth of a percent, X.X%.)

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Rate of return on total assets

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%

Requirement 3. Compute the asset turnover ratio for 2016. Begin by selecting the formula to calculate Win's

Companies' asset turnover ratio. Then enter the amounts and calculate the assets turnover ratio for 2016.

(Round your answers to two decimal places, X.XX.)

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Asset turnover ratio

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Requirement 4. Compute the rate of return on common stockholders' equity for 62016.

Begin by selecting the formula to calculate Win's

Companies' rate of return on common stockholders' equity. Then enter the amounts and calculate the rate of return on common stockholders' equity for 2016.

(Abbreviation used: Avg. common SE = average common stockholders' equity. Complete all input boxes. Enter "0" for balances with a zero value. Round your answer to one tenth of a percent, X.X%.)

							Rate of return on common
(		-		) /		=	stockholders' equity

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%

Requirement 5. Are these rates of return strong or weak? Explain your reasoning. (Assume the following industry averages: profit margin ratio = 22.8%, rate of return on total assets = 10.3%, asset turnover ratio= .54, rate of return on common stockholders' equity = 10.3%.

These rates of return are: 1) average 2) strong or 3) weak

Considering that :

1) average companies present much higher rates of return

2)average companies present much lower rates of return

3) average companies present similar rates of return

average companies present much higher rates of return

average companies present much lower rates of return.

average companies present similar rates of return.