Use the following information from a balance sheet and an income statement. Total assets.....................................................$240,000 Total liabilities....................................................60,000 Total

Question:

Use the following information from a and an income statement.
Total assets.....................................................$240,000
Total liabilities....................................................60,000
Total stockholders' equity.....................................180,000
Net sales.........................................................260,000
Cost of goods sold.............................................140,000
Operating expenses.............................................80,000
Compute the
(1) Profit margin,
(2)
(3) Return on assets,
(4) Debt to equity ratio, and
(5) Return on equity. (The previous year's total assets were $200,000, and stockholders' equity was $140,000.) Round your answers to one decimal place.
1. Profit margin %
2. times
3. Return on assets %
4. Debt to equity ratio %
5. Return on equity %
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...