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
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F083ab2a4-4a41-4458-a213-dd9ba7361304%2F7f2f25c5-f15a-48b1-9a68-0fe1a120969c%2Fsbi01xp_processed.png&w=3840&q=75)
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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