Selected Financial Statement Data for Homer Company Are Presented Below

question 149

Essay

Selected financial statement data for Homer Company are presented below. $\begin{array}{lr}\text { Net sales } & \$ 1,500,000 \\\text { Cost of goods sold } & 700,000 \\\text { Interest expense } & 10,000 \\\text { Net income } & 205,000 \\\text { Total assets (ending) } & \$ 900,000 \\\text { Total common stockholders' equity (ending) } & \$ 600,000\end{array}$ Total assets at the beginning of the year were $800000; total common stockholders' equity was $500000 at the beginning of the period.
Instructions
Compute each of the following:
(a) Asset turnover
(b) Profit margin
(c) Return on assets
(d) Return on common stockholders' equity