Compute four ratios ( ROS, ROA, ROE,EPS) that measure ability to earn profits for Dominion Decor Inc.
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Compute four ratios ( ROS, ROA, ROE,EPS) that measure ability to earn profits for Dominion Decor Inc. whose comparative income statement follows
Did the company's operating performance improve or deteriorate during 2020?
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Comparative income statement Dominion Decor Inc. Comparative Income Statement For the Years Ended December 31, 2020, and 2019 (in thousands) 2020 Net sales Cost of goods sold Gross profit Selling and general expenses Income from operations Interest expense Income before income tax Income tax expense Net income $ 193,000 91,000 102,000 46.400 55,600 10,000 2019 $ 159,000 78,500 45,600 9.950 $ 35,650 $ - 80,500 39.000 41,500 12,100 29.400 9,100 20,300 X Comparative income statement Dominion Decor Inc. Comparative Income Statement For the Years Ended December 31, 2020, and 2019 (in thousands) 2020 Net sales Cost of goods sold Gross profit Selling and general expenses Income from operations Interest expense Income before income tax Income tax expense Net income $ 193,000 91,000 102,000 46.400 55,600 10,000 2019 $ 159,000 78,500 45,600 9.950 $ 35,650 $ - 80,500 39.000 41,500 12,100 29.400 9,100 20,300 X Comparative income statement Dominion Decor Inc. Comparative Income Statement For the Years Ended December 31, 2020, and 2019 (in thousands) 2020 Net sales Cost of goods sold Gross profit Selling and general expenses Income from operations Interest expense Income before income tax Income tax expense Net income $ 193,000 91,000 102,000 46.400 55,600 10,000 2019 $ 159,000 78,500 45,600 9.950 $ 35,650 $ - 80,500 39.000 41,500 12,100 29.400 9,100 20,300 X Comparative income statement Dominion Decor Inc. Comparative Income Statement For the Years Ended December 31, 2020, and 2019 (in thousands) 2020 Net sales Cost of goods sold Gross profit Selling and general expenses Income from operations Interest expense Income before income tax Income tax expense Net income $ 193,000 91,000 102,000 46.400 55,600 10,000 2019 $ 159,000 78,500 45,600 9.950 $ 35,650 $ - 80,500 39.000 41,500 12,100 29.400 9,100 20,300 X
Expert Answer:
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Return on Sales ROS can be calculated by formula Net Income Preferred Dividends Net Sales 100 For 20... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
Posted Date:
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