Selected comparative statement data for Molini Products Company are presented below. All balance sheet data are as of December 31.

Instructions

Compute the following ratios for 2014.

(a) Profit margin.

(b) Asset turnover.

(c) Return on assets.

(d) Return on common stockholders’ equity.

2014 2013 Net sales Cost of goods sold Interest expense Net income Accounts receivable Inventory Total assets Total common stockholders' equity $700,000 $680,000 400,000 5,000 34,000 100,000 75,000 540,000 325,000 480,000 7,000 42,000 120,000 85,000 580,000 425,000