Company€™s condensed income statement for 2016 and December 31, 2016, balance sheet follow:Income StatementSales (net) .........$ 304,400Cost of goods sold ...... (183,600)Gross profit .........$ 120,800Operating expenses ..... (82,000)Operating income ....... $ 38,800Interest expense ....... (7,000)Income before income taxes .. $ 31,800Income taxes ............. (10,000)Net income ........ $ 21,800Balance Sheet Additional information: The common stock was outstanding the entire year and

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Company€™s condensed income statement for 2016 and December 31, 2016, balance sheet follow:
Income Statement
Sales (net) .........$ 304,400
Cost of goods sold ...... (183,600)
Gross profit .........$ 120,800
Operating expenses ..... (82,000)
Operating income ....... $ 38,800
Interest expense ....... (7,000)
Income before income taxes .. $ 31,800
Income taxes ............. (10,000)
Net income ........ $ 21,800
Balance Sheet
Company€™s condensed income statement for 2016 and December 31, 2016,

Additional information: The common stock was outstanding the entire year and is selling for $16 per share at year-end. On January 1, 2016, the inventory was $21,500, the total assets were $224,000, the accounts payable were $18,800, and the total shareholders€™ equity was $130,800. The company operates on a 365-day business year.
Required:
Compute the following ratios for Miller (round all computations to two decimal places):
(1) Gross profit margin,
(2) Operating profit margin,
(3) Net profit margin,
(4) Total asset turnover,
(5) Return on total assets,
(6) Return on common equity,
(7) Current,
(8) Inventory turnover (in days), and
(9) Payables turnover (in days).

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...
Related Book For answer-question

Intermediate Accounting Reporting and Analysis

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

ISBN: 978-1285453828