Use the financial statements of Jeryht Bakers Corp.
1. Compute these profitability measures for 2017:
a. Rate of return on net sales
b. Rate of return on total assets; interest expense for 2017 was $0.6 million
c. Rate of return on common shareholders' equity
2. Are these rates of return strong or weak? Explain.
Jeryht Bakers Corp., a baking supplies chain, reported these summarized figures (in millions):
JERYHT BAKERS CORP.
Income Statement
For the Year Ended December 31, 2017
Net sales ....................... $61.6
Cost of goods sold ........... 42.4
Interest expense ............... 0.6
All other expenses ............. 15.0
Net income .................... $ 3.6

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JERYHT BAKERS CORP Balance Sheet December 31 2017 2016 Cash Short-term investments Accounts receivable Inventory Other current assets Total current assets All other assets Total assets 2017 2016 $ 8.8 $ 7.2 8.3 17.4 15.5 4.8 15.711.8 16.6 24.6 21.0 Total liabilities and equity $38.3 $32.1 $ 2.8 0.4 0.5 $1.6 Total current liabilities 0.5 Long-term liabilities 0.4 Total liabilities 8.0 Common shares 0.6 Retained earnings 8.6 5.2 0.8 13.7 11.1 Total equity 20.9 $38.3 $32.1