Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of
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Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of $1,917,000 (dollar amounts in thousands, except earnings per share).
a. Prepare an income statement for the year in a multiple-step format.
b. Compute the (1) gross profit rate, (2) net income as a percentage of net sales, (3) return on assets, and (4) return on equity for the year. (Round computations to the nearest one-tenth of 1 percent.)
c. Explain why interest revenue is not included in the company’s gross profit computation.
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Related Book For
Financial Accounting
ISBN: 978-0077862381
16th edition
Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
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