Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).     2022   2021 Net sales   $4,950.2   $5,700.8 Cost of goods sold   3,500.5   3,800.7 Net income   75.2   170.7 Accounts receivable   65.0   103.3 Inventory   1,150.0   1,350.1 Total assets   2,950.1   3,250.1 Total common stockholders’ equity   970.9   1,140.9 Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)   Profit margin   enter profit margin in percentages rounded to 1 decimal place  % (b)   Asset turnover   enter asset turnover in times rounded to 2 decimal places  times (c)   Return on assets   enter return on assets in percentages rounded to 1 decimal place  % (d)   Return on common stockholders’ equity   enter return on common stockholders' equity in percentages rounded to 1 decimal place  % (e)   Gross profit rate   enter gross profit rate in percentages rounded to 1 decimal place  %   how to compute ratios for  Profit margin asset turnover return on assets return on common stockholders equity gross profit rate

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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Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).

   
2022
 
2021
Net sales
  $4,950.2   $5,700.8
Cost of goods sold
  3,500.5   3,800.7
Net income
  75.2   170.7
Accounts receivable
  65.0   103.3
Inventory
  1,150.0   1,350.1
Total assets
  2,950.1   3,250.1
Total common stockholders’ equity
  970.9   1,140.9


Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%)

(a)   Profit margin  
enter profit margin in percentages rounded to 1 decimal place
 %
(b)   Asset turnover  
enter asset turnover in times rounded to 2 decimal places
 times
(c)   Return on assets  
enter return on assets in percentages rounded to 1 decimal place
 %
(d)   Return on common stockholders’ equity  
enter return on common stockholders' equity in percentages rounded to 1 decimal place
 %
(e)   Gross profit rate  
enter gross profit rate in percentages rounded to 1 decimal place
 %

 

how to compute ratios for 

Profit margin

asset turnover

return on assets

return on common stockholders equity

gross profit rate

 

 

 

 

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