Company€™s condensed income statement for 2016 and December 31, 2016, balance sheet follow:
Income Statement
Sales (net) .........$ 304,400
Cost of goods sold ...... (183,600)
Gross profit .........$ 120,800
Operating expenses ..... (82,000)
Operating income ....... $ 38,800
Interest expense ....... (7,000)
Income before income taxes .. $ 31,800
Income taxes ............. (10,000)
Net income ........ $ 21,800
Balance Sheet

Additional information: The common stock was outstanding the entire year and is selling for $16 per share at year-end. On January 1, 2016, the inventory was $21,500, the total assets were $224,000, the accounts payable were $18,800, and the total shareholders€™ equity was $130,800. The company operates on a 365-day business year.
Required:
Compute the following ratios for Miller (round all computations to two decimal places):
(1) Gross profit margin,
(2) Operating profit margin,
(3) Net profit margin,
(4) Total asset turnover,
(5) Return on total assets,
(6) Return on common equity,
(7) Current,
(8) Inventory turnover (in days), and
(9) Payables turnover (in days).

Transcribed Image Text:

Cash Receivables (net Inventory Property, plant, and equipment (net) $ 8,200 Accounts payable 18,000 6,800 70,000 80,500 24,000 38,700 $238,000 14,700 Other current liabilities 19,300 Bonds payable, 10% 195,800 Common stock, $10 par Additional paid-in capital on common stock Retained earnings Total Assels $238,000 ities and Shareholders Equity