Titabllity ratios (LO4-1oj The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 Income statement information Net sales $5,400 $4,400 Net income 228 128 Balance sheet information Current assets 2$ 820 770 Property, plant, and equipment (net) 1,280 930 Total assets $2,100 $1,700 Current liabilities $ 560 $ 210 Long-term liabilities 770 770 Common stock 600 600 Retained earnings 170 120 Liabilities and shareholders' equity $2,100 $1,700 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a. Profit margin on sales 4.2 O % 1b Return on assets 10.0 % 1c. Return on equity 30.6 O % 2. Dividends paid $ 280,000

Titabllity ratios (LO4-1oj The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 Income statement information Net sales $5,400 $4,400 Net income 228 128 Balance sheet information Current assets 2$ 820 770 Property, plant, and equipment (net) 1,280 930 Total assets $2,100 $1,700 Current liabilities $ 560 $ 210 Long-term liabilities 770 770 Common stock 600 600 Retained earnings 170 120 Liabilities and shareholders' equity $2,100 $1,700 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a. Profit margin on sales 4.2 O % 1b Return on assets 10.0 % 1c. Return on equity 30.6 O % 2. Dividends paid $ 280,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 90PSB

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Exercise 4-27 (Algo) Profitability ratios [LO4-10]
The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020:
($ in thousands)
2021
2020
Income statement information
Net sales
$5,400
$4,400
Net income
228
128
Balance sheet information
Current assets
820
770
Property, plant, and equipment (net)
1,280
930
Total assets
$2,100
$1,700
Current liabilities
560
210
Long-term liabilities
770
770
Common stock
600
600
Retained earnings
170
120
Liabilities and shareholders' equity
$2,100
$1,700
Required:
1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.)
2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For
example, $150,000 rather than 150.)
1a.
Profit margin on sales
4.2 %
10.0 X %
30.6 O %
1b.
Return on assets
1c.
Return on equity
2.
Dividends paid
$ 280,000 8

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