The following financial information about Cloudburst Co. is available: Sales................. $600,000 Net income............... 130,000 Average total assets...........

Question:

The following financial information about Cloudburst Co. is available:
Sales................. $600,000
Net income............... 130,000
Average total assets........... 900,000
Average stockholders' equity....... 440,000
The following additional information is available:
• 500,000 shares of were outstanding during the year.
• The stock was recently trading for $5.00 per share.
Required
Compute the following ratios: profit margin, return on equity, return on assets, earnings per share, and price to earnings. Round percentages to one decimal point (i.e., 12.8%).
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...