Accel’s Companies, a home improvement store chain, reported the following summarized figures:

Requirements
1. Compute the profit margin ratio for Accel’s Companies for 2024.
2. Compute the rate of return on total assets for 2024.
3. Compute the asset turnover ratio for 2024.
4. Compute the rate of return on common stockholders’ equity for 2024.
5. Are these rates of return strong or weak? Explain your reasoning.

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ACCEL'S COMPANIES Income Statement Years Ended May 31, 2024 and 2023 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 2024 $ 40,600 28,400 600 4,300 $ 7,300 2023 $ 40,500 30,600 570 8,200 $ 1,130