Miller Company's condensed income statement for 2013 and December 31, 2013, balance sheet follow: Income Statement Sales

Question:

Miller Company's condensed income statement for 2013 and December 31, 2013, 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

Miller Company's condensed income statement for 2013 and December 31,

Additional information: The common stock was outstanding the entire year and is selling for $16 per share at yearend.
On January 1, 2013, 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).

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Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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