Return Ratios and Leverage

The following selected data are taken from the financial statements of Cedar Industries:

Sales Revenue	$679,000
Costs of Goods Sold	$398,000
Gross Profit	$281,000
Selling and administrative expense	$100,000
Operating income	$181,000
Interest expense	$50,000
Income before tax	$131,000
Income tax expense (40%)	$52,400
Net income	$78,600
Accounts payable	$45,000
Accrued liabilities	$70,000
Income taxes payable	$10,000
Interest payable	$25,000
Short-term loans payable	$150,000
Total current liabilities	$300,000
Long-term bonds payable	$500,000
Preferred stock, 10%, $100 par	$250,000
Common stock, no par	$600,000
Retained earnings	$350,000
Total stockholders' equity	$1,200,000
Total liabilities and stockholders' equity	$2,000,000

Required: Show Your Work

1. Compute the following ratios for Cedar Industries:

1. Return on sales
2. Asset turnover (Assume that total assets at the beginning of the year were $1,600,000.)
3. Return on assets
4. Return on common stockholders' equity (Assume that the only changes in stockholders' equity during the year were from the net income for the year and dividends on the preferred stock.)

When computing percentage amounts, carry out calculations to four decimal places, but enter your answers to two decimal places; for example, .17856 rounds to .1786 and would be entered as 17.86.

a. Return on sales	Please fill in the blank	%
b. Asset turnover (round to 2 decimal places)	Please fill in the blank	times
c. Return on assets	Please fill in the blank	%
d. Return on common stockholders' equity	Please fill in the blank	%