he following information is available for Buhler Company: Annual Data 2013 2012 Net sales $10,200,000 $9,600,000 Gross profit on sales 3,053,000 2,736,000 Net income 567,600 488,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total assets $8,100,000 $7,700,000 Stockholders' equity 3,800,000 3,200,000 Calculate the following ratios for 2013: Note: Round answers to one decimal place, unless otherwise noted. a. Gross profit percentage Answer % b. Return on sales Answer % c. Asset turnover (Round answer to two decimal places.) Answer d. Return on assets Answer % e. Return on common stockholders' equity (Buhler Company has no preferred stock.) Answer
he following information is available for Buhler Company: Annual Data 2013 2012 Net sales $10,200,000 $9,600,000 Gross profit on sales 3,053,000 2,736,000 Net income 567,600 488,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total assets $8,100,000 $7,700,000 Stockholders' equity 3,800,000 3,200,000 Calculate the following ratios for 2013: Note: Round answers to one decimal place, unless otherwise noted. a. Gross profit percentage Answer % b. Return on sales Answer % c. Asset turnover (Round answer to two decimal places.) Answer d. Return on assets Answer % e. Return on common stockholders' equity (Buhler Company has no preferred stock.) Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ratios Analyzing Firm Profitability
The following information is available for Buhler Company:
| Annual Data | 2013 | 2012 |
|---|---|---|
| Net sales | $10,200,000 | $9,600,000 |
| Gross profit on sales | 3,053,000 | 2,736,000 |
| Net income | 567,600 | 488,000 |
| Year-End Data | Dec. 31, 2013 | Dec. 31, 2012 |
|---|---|---|
| Total assets | $8,100,000 | $7,700,000 |
| 3,800,000 | 3,200,000 |
Calculate the following ratios for 2013:
Note: Round answers to one decimal place, unless otherwise noted.
a. Gross profit percentage
Answer
%
b. Return on sales
Answer
%
c. Asset turnover (Round answer to two decimal places.)
Answer
d. Return on assets
Answer
%
e. Return on common stockholders' equity (Buhler Company has no
Answer
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education