Refer to Sanderson Companys financial information in Exercises 17-7 and 17-9. Evaluate the companys efficiency and profitability
Question:
Refer to Sanderson Company’s financial information in Exercises 17-7 and 17-9. Evaluate the company’s efficiency and profitability by computing the following for 2012 and 2011:
(1) Profit margin ratio,
(2) Total asset turnover, and
(3) Return on total assets.
Comment on these ratioresults
Transcribed Image Text:
For Year Ended December 31 2012 2011 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $672,500 $530,000 $410,225 208,550 11,100 8,525 $344,500 33,980 2,300 7,845 638,400 $ 34,100 $ 2.10 498,625 $ 31,375 $ 1.93
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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