Suppose selected comparative statement data for the giant bookseller Barnes & Noble are as follows. All balance sheet data are as of the end of the fiscal year (in millions). 2022 2021 Net sales $5,250.5 $5,600.7 Cost of goods sold 3,000.0 3,800.7 Net income 85.3 160.6 Accounts receivable 75.1 100.0 Inventory 1,250.1 1,350.1 Total assets 2,850.0 3,150.0 Total common stockholders’ equity 880.0 1,100.5 Compute the following ratios for 2022. (Round asset turnover to 2
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are as follows. All balance sheet data are as of the end of the fiscal year (in millions). 2022 2021 Net sales $5,250.5 $5,600.7 Cost of goods sold 3,000.0 3,800.7 Net income 85.3 160.6 Accounts receivable 75.1 100.0 Inventory 1,250.1 1,350.1 Total assets 2,850.0 3,150.0 Total common stockholders’ equity 880.0 1,100.5 Compute the following ratios for 2022. (Round asset turnover to 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are as follows. All balance sheet data are as of the end of the fiscal year (in millions).
|
2022
|
2021
|
|||
|---|---|---|---|---|
|
Net sales
|
$5,250.5 | $5,600.7 | ||
|
Cost of goods sold
|
3,000.0 | 3,800.7 | ||
|
Net income
|
85.3 | 160.6 | ||
|
Accounts receivable
|
75.1 | 100.0 | ||
|
Inventory
|
1,250.1 | 1,350.1 | ||
|
Total assets
|
2,850.0 | 3,150.0 | ||
|
Total common
|
880.0 | 1,100.5 |
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 places
|
% | ||
|---|---|---|---|---|---|
|
(b)
|
Asset turnover
|
enter a number for 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 in percentages rounded to 1 decimal place
|
% |
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Follow-up Question
Based on the above, what is the following:
|
(e)
|
Gross profit rate
|
% |
|---|
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