Profit margin Gross profit rate Asset turnover 2025 de % % times 2024 % % times (Round answers to 1 decir place, e.g. 1.5%.) (Round answers to 1 decir place, e.g. 1.5%) (Round answers to 2 decir places, e.g. 1.83.)
Profit margin Gross profit rate Asset turnover 2025 de % % times 2024 % % times (Round answers to 1 decir place, e.g. 1.5%.) (Round answers to 1 decir place, e.g. 1.5%) (Round answers to 2 decir places, e.g. 1.83.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Additional information:
The market price of Blue's common stock was $7.00, $7.50, and $8.50 for 2023, 2024, and 2025, respectively.
2. You must compute dividends declared. All declared dividends were paid in cash in the year of declaration.
1.
(a) Compute the following ratios for 2024 and 2025.
Profit margin
Gross profit
rate
Asset turnover
Earnings per
share
Price-earnings
ratio
Payout ratio
Debt to assets
ratio
+A
2025
%
de
%
times
times
%
de
%
2024
%
%
times
times
%
%
(Round answers to 1 decimal
place, e.g. 1.5%.)
(Round answers to 1 decimal
place, e.g. 1.5%.)
(Round answers to 2 decimal
places, e.g. 1.83.)
(Round answers to 2 decimal
places, e.g. 1.83.)
(Round answers to 1 decimal
place, e.g. 1.5.)
(Round answers to O decimal
places, e.g. 15%.)
(Round answers to O decimal
places, e.g. 15%.)

Transcribed Image Text:Cash
Accounts receivable (net)
Other current assets
Investments
Property, plant, and equipment (net)
Current liabilities
Long-term debt
Common stock, $10 par
Retained earnings
Blue Corporation
Balance Sheets
December 31
Net income
2025
$31,000 $21,000
51,000
95,000
60,000
500,000
$86,000
150,000
370,000
$737,000 $612,000
$81,000
325,000
176,000
$737,000
Blue Corporation
Income Statements
For the Years Ended December 31
Sales revenue
Less: Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
Operating expenses (including income taxes)
2024
46,000
100.000
2025
75,000
90,000
315,000
$745,000
41,000
704,000
430,000
2023
$19,000
49,000
126,000
114,000
$612,000 $545,000
69,000
2024
50,000
358,000
$545,000
$71,000
55,000
305,000
$605,000
31,000
574,000
355,000
219,000
151,000
274,000
181,000
$93,000 $68,000
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