Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit $ 209,000 106,000 $103,000 Selling and administrative expense 41,500 Lease expense 19,600 Operating profit* $ 41,900 Interest expense 8,800 Earnings before taxes $ 33,100 Taxes (30%) 13,240 Earnings after taxes $ 19,860 Equals income before interest and taxes. a. Compute the profit margin ratio. b. Compute the total asset turnover ratio. c. Compute the return on assets (investment).

Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit $ 209,000 106,000 $103,000 Selling and administrative expense 41,500 Lease expense 19,600 Operating profit* $ 41,900 Interest expense 8,800 Earnings before taxes $ 33,100 Taxes (30%) 13,240 Earnings after taxes $ 19,860 Equals income before interest and taxes. a. Compute the profit margin ratio. b. Compute the total asset turnover ratio. c. Compute the return on assets (investment).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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