Slow Corporation Reported the Following Data for the Year Ended

question 68

Essay

Slow Corporation reported the following data for the year ended December 31, 20X3: $$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Net sales revenue } & \$ 400,000 \\\hline \text { Profit } & 25,000 \\\hline \text { Interest expense (net of tax) } & 3,000 \\\hline \text { Total assets } & 200,000 \\\hline \text { Shareholders' equity } & 160,000 \\\hline \text { Net fixed assets } & 100,000 \\\hline \text { Shares of common stock outstanding } & 15,000 \text { shares } \\\hline \text { Market value per share } & \$ 16.00 \\\hline\end{array}\\\\\text { Compute the following ratios: }\\\begin{array} { | l | l | } \hline \text { (a) } & \text { Profit margin } \\\hline \text { (b) } & \text { Return on assets } \\\hline \text { (c) } & \text { Return on equity } \\\hline \text { (d) } & \text { Earnings per share } \\\hline \text { (e) } & \text { Price/earnings ratio } \\\hline \text { (f) } & \text { Debt/equity ratio } \\\hline \text { (g) } & \text { Financial leverage percent } \\\hline \text { (h) } & \text { Fixed asset turnover ratio } \\\hline\end{array}\end{array}$$

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Definitions:

Personally Involved

Being actively engaged or deeply interested in a particular activity, project, or cause on a personal level.

Creating Vision

The process of defining a clear and inspiring long-term goal or direction for an individual, team, or organization.

Motivating People

The process of encouraging or stimulating individuals to act in a way that achieves desired outcomes, often involving incentives or inspirational leadership.

Empowering Others

The act of delegating authority and fostering self-reliance in individuals or groups to enhance their confidence and capability to make decisions.