Comparative financial statements for the Rahul Corporation for t
Comparative financial statements for the Rahul Corporation for the year ended December 31 are given below. A total of 500,000 shares of stock were outstanding. The market value of the company’s stock at the end of the year was $25.


Rahul Corporation
Comparative Income Statement and Reconciliation of Retained Earnings
For the Year Ended December 31, 2012 and 2011


Required
Compute the following financial ratios for the year 2012:
a. Gross margin percentage.
b. Earnings per share.
c. Price–earnings ratio.
d. Return on total assets.
e. Return on common stockholders ‘equity.
Comment on theresults.
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