Question: For 2016 and 2015, compute return on sales (ROS), asset turnover (AT), return on assets (ROA), leverage (L), return on common stockholders' equity (ROE), gross
For 2016 and 2015, compute return on sales (ROS), asset turnover (AT), return on assets (ROA), leverage (L), return on common stockholders' equity (ROE), gross profit percentage (GP), operating income percentage (OI), and earnings per share (EPS) to measure the ability to earn profits for Dominion Decor, Inc., whose comparative income statements follow. Use DuPont Analysis for ROA and ROE, and round each component ratio to three decimals; for other ratio computations, round to two decimals.
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Did the company's operating performance improve or deteriorate during 2016?
Dominion Decor, Inc. Comparative Income Statements Years Ended December 31, 2016 and 2015 2016 2015 S 190,000240000 134,000 880001-106,000 9,000 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 102,000 4 44000 44,000 9,000 7000 5,000 50,000 12,00016,000 2016 2015 2014 S 300,000 $ 270,000 $250,000 Common stockholders' equity104,000 $ 103,000 $102,000 Preferred dividend.s....15,000 14,000 $ 3,000 Average common shares outstanding during the year 24,000 23,000 22,000
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a Return on net sales 2016 23000 15000 0042 2015 34000 14000 0083 190000 240000 b Asse... View full answer
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