The Following Selected Data Are Taken from the Financial Statements

question 76

Essay

The following selected data are taken from the financial statements of Ulysses Company:
REQUIRED:
1. Compute the following ratios for Ulysses Company:
a. Return on sales
b. Asset turnover Assume that total assets at the beginning of the year were $1,600,000. Round final answers to 3 decimals.
c. Return on assets
d. 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.
2. Comment on Ulysses' use of leverage. Has it successfully employed leverage?
Explain.

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