The following selected information is for Xtreme Corporation:

Instructions
(a) Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on equity ratios for 2014 and 2013.
(b) Indicate whether each of the profitability ratios calculated in (a) is better or worse in 2014?

Transcribed Image Text:

2013 2014 $350,000 133,500 500,000 375,000 33,500 2012 Total assets Total shareholders' equity Net sales Cost of goods sold Profit 275,000 $274467 50,000 300,000 180,000 20,000 100,000 400,000 290,000 30,000