Chapter D, Problem 20E

Micatin, Inc.’s comparative income statement follows. The 2l07 data are given as needed.

Requirements

1. 1. Calculate the profit margin ratio for 2019 and 2018.
2. 2. Calculate the rate of return on total assets for 2019 and 2018.
3. 3. Calculate the asset turnover ratio for 2019 and 2018.
4. 4. Calculate the rate of return on common stockholders’ equity for 2019 and 2018.
5. 5. Calculate the earnings per share for 2019 and 2018.
6. 6. Calculate the 2019 dividend payout on common stock, Assume dividends per share for common stock are equal to $1.13 per share.
7. 7. Did the company’s operating performance improve or deteriorate during 2019?