Win's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to...
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Win's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Win's has 20,000 common shares outstanding during 2024) Read the requirements. Requirement 1. Compute the profit margin ratio for Win's Companies for 2024 Begin by selecting the formula to calculate Win's Companies' profit margin ratio. Then enter the amounts and calculate the profit margin ratio for 2024. (Round your answer to one tenth of a percent, XX%) Profit margin ratio Requirements 1. Compute the profit margin ratio for Win's Companies for 2024. 2. Compute the rate of return on total assets for 2024. 3. Compute the asset turnover ratio for 2024. 4. Compute the rate of return on common stockholders' equity for 2024. 5. Are these rates of return strong or weak? Explain your reasoning. X Income Statement Win's Companies Income Statement Years Ended May 31, 2024 and 2023 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 2024 2023 $ 46,500 $ 41,600 21,200 24,900 400 320 6,900 8,400 EA 18,000 $ 7,980 Balance Sheets Win's Companies Balance Sheet May 31, 2024 and 2023 Assets Liabilities 2024 2023 2024 2023 Cash 2,000 $ 1,800 Total Current Liabilities 27,000 $ 13,300 Short-term Investments 24,000 10,000 Long-term Liabilities 13,800 10,600 Accounts Receivable 7,400 5,600 Total Liabilities 40,800 23,900 Merchandise Inventory 6,800 6,300 Stockholders' Equity Other Current Assets 7,000 1,800 Common Stock 8,000 8,000 Total Current Assets 47,200 25,500 Retained Earnings 28,400 21,600 30,000 All Other Assets 28,000 Total Equity 36,400 29,600 $ 77,200 $ 53,500 77,200 $ 53,500 Total Assets Total Liabilities and Equity Win's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Win's has 20,000 common shares outstanding during 2024) Read the requirements. Requirement 1. Compute the profit margin ratio for Win's Companies for 2024 Begin by selecting the formula to calculate Win's Companies' profit margin ratio. Then enter the amounts and calculate the profit margin ratio for 2024. (Round your answer to one tenth of a percent, XX%) Profit margin ratio Requirements 1. Compute the profit margin ratio for Win's Companies for 2024. 2. Compute the rate of return on total assets for 2024. 3. Compute the asset turnover ratio for 2024. 4. Compute the rate of return on common stockholders' equity for 2024. 5. Are these rates of return strong or weak? Explain your reasoning. X Income Statement Win's Companies Income Statement Years Ended May 31, 2024 and 2023 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 2024 2023 $ 46,500 $ 41,600 21,200 24,900 400 320 6,900 8,400 EA 18,000 $ 7,980 Balance Sheets Win's Companies Balance Sheet May 31, 2024 and 2023 Assets Liabilities 2024 2023 2024 2023 Cash 2,000 $ 1,800 Total Current Liabilities 27,000 $ 13,300 Short-term Investments 24,000 10,000 Long-term Liabilities 13,800 10,600 Accounts Receivable 7,400 5,600 Total Liabilities 40,800 23,900 Merchandise Inventory 6,800 6,300 Stockholders' Equity Other Current Assets 7,000 1,800 Common Stock 8,000 8,000 Total Current Assets 47,200 25,500 Retained Earnings 28,400 21,600 30,000 All Other Assets 28,000 Total Equity 36,400 29,600 $ 77,200 $ 53,500 77,200 $ 53,500 Total Assets Total Liabilities and Equity
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Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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