The following end-of-year amounts are from the financial statements of Kostas Corporation: total assets, $106,500; total liabilities,

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The following end-of-year amounts are from the financial statements of Kostas Corporation: total assets, $106,500; total liabilities, $43,000; stockholders’ equity, $63,500; net sales, $195,500; cost of goods sold, $116,500; operating expenses, $47,000; income taxes, $8,500; and dividends, $10,000. Cash flows from operating activities were $35,000.

During the past year, total assets increased by $18,750. Total stockholders’ equity was affected only by net income and dividends.

Compute the

(1) Profit margin,

(2) Asset turnover,

(3) Return on assets,

(4) Cash flow yield,

(5) Cash return on assets,

(6) Debt to equity ratio,

(7) Return on equity. (Note: Round to one decimal place.)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting

ISBN: 978-0538476010

11th edition

Authors: Belverd E. Needles, Marian Powers

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