Question: Can anyone help me solve or figure out the process to solve these using the rules provided ? Help on Financial Ratios - Income Statement

Can anyone help me solve or figure out the process to solve these using the rules providedCan anyone help me solve or figure out the process to solve?

these using the rules provided? Help on Financial Ratios - Income Statement

Help on Financial Ratios - Income Statement Most of the financial ratios taken from an income statement measure profitability (a company's ability to generate an adequate return on invested capital). Profit margin = Net income / Net sales Gross Margin Ratio = (Net sales - Cost of goods sold) / Net sales Return on Total Assets = Net income / Average total assets Return on Common Stockholders' Equity = (Net income - Preferred Dividends) Average Common Stockholders' Equity Price Earnings Ratio = Market price per common share / Earnings per common share Income Statement Supplemental Information Sales Cost of Goods Sold $510,000.00 340,000.00 Earnings Per Share: Net Income / Common Shares Outstanding = Earnings Per Share $91,500.00 / 100,000 = $0.92 Gross Profit from Sales $170,000.00 20,000.00 22,000.00 10,000.00 Operating Expenses: Salaries Expense Advertising Expense Insurance Expense Supplies Expense Depreciation Expense Banking Expense Miscellaneous Expense Average Total Assets: (Beginning Total Assets + Ending Total Assets)/2 = Average Total Assets ($300,000.00 + $300,000.00) / 2 = $300,000.00 600.00 1,000.00 Average Common Stockholders' Equity: (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity)/2 = Average Common Stockholders' Equity ($180,000.00 + $170,000.00) / 2 = $175,000.00 Total Operating Expenses $ 75, 600.00 $94,400.00 Income From Operations Plus Interest Earned Less Interest Expense Book Value Per Share of Common Stock: Common Stockholders' Equity / Common Shares Outstanding $170,000.00 / 100,000 = $1.70 1,500.00 600.00 900.00 Market Price per Share of Common Stock: $36.00 Income Before Taxes Income Taxes $93,500.00 2,000.00 Preferred Stock has not been issued. Net Income $91,500.00 ========== Profit Margin: Gross Margin Ratio: Return on Assets: Return on Common Price Earnings Stockholders' Equity: Ratio: Verify Answers Next Stateme

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