Selected Current Year End Financial Information for a Company Is

question 208

Essay

Selected current year end financial information for a company is presented below. Calculate the following company ratios:
(a) Profit margin.
(b) Total asset turnover.
(c) Return on total assets.
(d) Return on common stockholders' equity (assume the company has no preferred stock).
Net income……………………………….. $ 325,000
Net sales………………………………….. 4,700,000
Total liabilities, beginning-year………….. 550,000
Total liabilities, end-of-year……………… 530,000
Total stockholders' equity, beginning-year.
760,000
Total stockholders' equity, end-of-year….. 745,000

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Definitions:

Berlin Wall

A concrete barrier that physically and ideologically divided Berlin from 1961 to 1989.

East Berlin

The capital of East Germany from 1949 to 1990, serving as the governmental and cultural center of the country during the Cold War.

West Berlin

The part of Berlin that was occupied by the Allies after World War II and became an enclave within East Germany, symbolizing the Cold War division.

Suez Canal Crisis

A diplomatic and military confrontation in 1956 involving Egypt, Israel, France, and the United Kingdom, following Egypt's nationalization of the Suez Canal, previously controlled largely by British and French interests.