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I need help with last problem " return on Equilty" I need rounding it.

I need help with last problem " return on Equilty" I need rounding it.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with last problem " return on Equilty" I need rounding it.

Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover times Return on equity 0.0 %
Transcribed Image Text:Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover times Return on equity 0.0 %
The 2021 income statement of Adrian Express reports sales of $23,310,000, cost of goods sold of $13,250,000, and net income of $2,500,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable $ 1,100,000 $1,060,000 2,100,000 2,700,000 5,300,000 $11,200,000 $9,000,000 1,400,000 2,000,000 4,540,000 Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings $ 2,360,000 $2,000,000 2,760,000 2,400,000 3,680,000 $11,200,000 $9,000,000 2,740,000 2,200,000 2,060,000 Total liabilities and stockholders' equity Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets 45% 25% Profit margin 15% 20.5times 35% Asset turnover Return on equity
Transcribed Image Text:The 2021 income statement of Adrian Express reports sales of $23,310,000, cost of goods sold of $13,250,000, and net income of $2,500,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable $ 1,100,000 $1,060,000 2,100,000 2,700,000 5,300,000 $11,200,000 $9,000,000 1,400,000 2,000,000 4,540,000 Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings $ 2,360,000 $2,000,000 2,760,000 2,400,000 3,680,000 $11,200,000 $9,000,000 2,740,000 2,200,000 2,060,000 Total liabilities and stockholders' equity Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets 45% 25% Profit margin 15% 20.5times 35% Asset turnover Return on equity
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