Exercise 12-10A Calculate profitability ratios (LO12-4) The income statement for Stretch-Tape Corporation reports net sales of $291,100 and net income of $38,340. Average total assets for the year are $710,000. Stockholders' equity at the beginning of the year was $410,000, and $11,000 was paid to stockholders as dividends during the year. There were no other stockholders' equity transactions that occurred during the year. Required: Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.) Profitability Ratios Return on assets Profit margin % % times Return on equity % Asset turnover
Exercise 12-10A Calculate profitability ratios (LO12-4) The income statement for Stretch-Tape Corporation reports net sales of $291,100 and net income of $38,340. Average total assets for the year are $710,000. Stockholders' equity at the beginning of the year was $410,000, and $11,000 was paid to stockholders as dividends during the year. There were no other stockholders' equity transactions that occurred during the year. Required: Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.) Profitability Ratios Return on assets Profit margin % % times Return on equity % Asset turnover
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Exercise 12-10A Calculate profitability ratios (LO12-4)
The income statement for Stretch-Tape Corporation reports net sales of $291,100 and net income of $38,340. Average total assets for
the year are $710,000. Stockholders' equity at the beginning of the year was $410,000, and $11,000 was paid to stockholders as
dividends during the year. There were no other stockholders' equity transactions that occurred during the year.
Required:
Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.)
Profitability Ratios
Return on assets
Profit margin
%
%
times
Return on equity
%
Asset turnover
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