Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31. _2017 2016_ Net sales $1,160,000 $1,120,000 Cost of goods sold 700,000 640,000 Interest expense 15,000 10,000 Net income 150,000 140,000 Accounts receivable 140,000 120,000 Inventory 100,000 95,000 Total assets 780,000 700,000 Preferred stock (6%) 200,000 200,000 Total stockholders' equity 630,000 525,000 Instructions Compute the following ratios for 2017. (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on common stockholders' equity
Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31.
_2017 2016_
Net sales $1,160,000 $1,120,000
Cost of goods sold 700,000 640,000
Interest expense 15,000 10,000
Net income 150,000 140,000
Accounts receivable 140,000 120,000
Inventory 100,000 95,000
Total assets 780,000 700,000
Total stockholders' equity 630,000 525,000
Instructions
Compute the following ratios for 2017.
(a) Profit margin.
(b) Asset turnover.
(c) Return on assets.
(d) Return on common stockholders' equity
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