The simplified balance sheet and income statement for a corporation appear below. Income Statement For the Year
Question:
The simplified balance sheet and income statement for a corporation appear below.
Income Statement
For the Year Ended December 31, 2011
Net sales …………………………….. $830,000
Cost of goods sold ………………….. 500,000
Gross margin ……………………….. $330,000
Operating expenses ………………… 260,000
Income before income taxes ……….. $ 70,000
Income taxes ………………………. 10,000
Net income ………………………… $ 60,000
Total assets and stockholders’ equity at the beginning of 2011 were $360,000 and $280,000, respectively. Cash flows from operating activities were $72,000.Compute the following profitability measures:
(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.)
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer: