Selected Current Year Company Information Follows Calculate the Following Company Ratios:
(A)Profit Margin

question 129

Essay

Selected current year company information follows:
$$\begin{array} {| l | r| } \hline \text { Net incorne } & \$ 325,000 \\\hline \text { Net sales } & 4,700,000 \\\hline \text { Total liabilities, begirring-year } & 550,000 \\\hline \text { Total liabilities, end-of-year } & 530,000 \\\hline \text { Total stockholders' equity, begirring-year } & 760,000 \\\hline \text { Total stockholders' equity, end-of-year } & 745,000 \\\hline\end{array}$$
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).

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Definitions:

Total Sum of Squares

A statistical measure that quantifies the total variance in the observed data points from the mean of the data.

Variation

The extent to which data points in a statistical distribution or dataset diverge from the average or mean.

Degrees of Freedom

The number of independent values or quantities that can freely vary in an analysis without violating any given constraints.

Factorial Experiment

An experimental design technique in which the effects of two or more variables are studied at once by changing them together, rather than one at a time.