www.EquipmentLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders equity:Common stockRetained earningsTotal liabilities and stockholders' equityProfitability Ratios1. Gross profit ratio2. Return on assets3. Profit margin4. Asset turnover5. Return on equity6. Price-earnings ratio%%%1,095,000 1,095,000(398,000)(199,000)$3,034,000$2,948,000Earnings per share for the year ended December 31, 2024, are $1.25. The closing stock price on December 31, 2024, is $21.32.Required:Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.)times%$104,000034,500490,000590,0001,815,500$3,034,000$80,0003,90029,900490,000590,0001,754,200$2,948,000 The following income statement and balance sheets for The Athletic Attic are provided.THE ATHLETIC ATTICIncome StatementYear Ended December 31, 2024For theNet salesCost of goods soldGross profitExpenses:Operating expensesDepreciation expenseInterest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assets:Cash$1,545,000199,00039,000349,000Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders' equity:Common etorkTHE ATHLETIC ATTICBalance SheetsDecember 31Accounts receivableInventorySuppliesLong-term assets:EquipmentLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:$8,790,0005,395,0003,395,0002,132,000$1,263,0002024$153,000735,0001,350,000 1,020,00099,00074,0001,095,000(398,000)2023$104,000034,500490,0001,095,000(199,000)$3,034,000 $2,948,000500 aaa$203,000755,000$80,0003,90029,900490,000500 000

RATIO ANALYSISRatio analysis is the process of determining and interpreting numerical relationships…

www. Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Profitability Ratios 1. Gross profit ratio 2. Return on assets Earnings per share for the year ended December 31, 2024, are $1.25. The closing stock price on December 31, 2024, is $21.3 Required: Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.) 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price-earnings ratio % % % 1,095,000 1,095,000 (398,000) (199,000) $3,034,000 $2,948,000 times % $104,000 0 34,500 490,000 590,000 1,815,500 $3,034,000 $80,000 3,900 29,900 490,000 590,000 1,754,200 $2,948,000

www. Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Profitability Ratios 1. Gross profit ratio 2. Return on assets Earnings per share for the year ended December 31, 2024, are $1.25. The closing stock price on December 31, 2024, is $21.3 Required: Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.) 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price-earnings ratio % % % 1,095,000 1,095,000 (398,000) (199,000) $3,034,000 $2,948,000 times % $104,000 0 34,500 490,000 590,000 1,815,500 $3,034,000 $80,000 3,900 29,900 490,000 590,000 1,754,200 $2,948,000

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter3: Financial Statements, Tools, And Budgets

Section: Chapter Questions

Problem 3DTM

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