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

Instructions

Compute the following ratios for 2011.

(a) Profit margin.

(b) Asset turnover.

(c) Return on assets.

(d) Return on common stockholders’ equity.

2011 2010 Net sales $760,000 480,000 7,000 50,000 $720,000 Cost of goods sold Interest expense Net income 440,000 5,000 42,000 Accounts receivable 120,000 100,000 Inventory Total assets Total common stockholders equity 85,000 580,000 430,000 75,000 500,000 325,000