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Compute the following for year 2017 1. Gross Margin Ratio 2. Operating Profit Margin 3. Net Profit Margin or Return on Sales 4. Return on Equity 5. Return on Assets

Compute the following for year 2017 1. Gross Margin Ratio 2. Operating Profit Margin 3. Net Profit Margin or Return on Sales 4. Return on Equity 5. Return on Assets

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Compute the following for year 2017
1. Gross Margin Ratio
2. Operating Profit Margin
3. Net Profit Margin or Return on Sales
4. Return on Equity
5. Return on Assets

Compare Company Statement of Financial Position December 31,2016 and December 31, 2017 2017 2016 Current Assets Cash 190,000.00 160,000.00 Accounts Receivable 170,000.00 160,000.00 100,000.00 Inventory Prepaid Expense 80,000.00 80,000.00 80,000.00 Total current assets 520,000.00 500,000.00 Noncurrent Assets Plant and Equipment Total assets 1,450,000.00 1,430,000.00 1,970,000.00 1,930,000.00 Current Liabilities Accounts Payable 180,000.00 190,000.00 Accrued liabilities 110,000,00 80,000.00 Notes Payable (short term) 210,000.00 210,000.00 Total Current Liabilities 500,000.00 480,000.00 Long-term Debt Owner's Capital Total Liabilities and Equity 470,000.00 500,000.00 1,000,000.00 950,000.00 1,970,000.00 1,930,000.00
Transcribed Image Text:Compare Company Statement of Financial Position December 31,2016 and December 31, 2017 2017 2016 Current Assets Cash 190,000.00 160,000.00 Accounts Receivable 170,000.00 160,000.00 100,000.00 Inventory Prepaid Expense 80,000.00 80,000.00 80,000.00 Total current assets 520,000.00 500,000.00 Noncurrent Assets Plant and Equipment Total assets 1,450,000.00 1,430,000.00 1,970,000.00 1,930,000.00 Current Liabilities Accounts Payable 180,000.00 190,000.00 Accrued liabilities 110,000,00 80,000.00 Notes Payable (short term) 210,000.00 210,000.00 Total Current Liabilities 500,000.00 480,000.00 Long-term Debt Owner's Capital Total Liabilities and Equity 470,000.00 500,000.00 1,000,000.00 950,000.00 1,970,000.00 1,930,000.00
COMPARE CORPORATION Income Statement December 31,2016 and December 31,201 2017 2016 Net Sales 3,950,000.00 2,980,000.00 Less Cost of Goods Sold 1,500,000.00 1,050,000.00 Gross Profit 2,450,000.00 1,930,000.00 Less: Other Expenses 800,000.00 1,650,000.00 700,000.00 Operating Income Less: Interest Expense 1,230,000.00 30,000.00 25,000.00 Net Income 1,620,000.00 1,205,000.00
Transcribed Image Text:COMPARE CORPORATION Income Statement December 31,2016 and December 31,201 2017 2016 Net Sales 3,950,000.00 2,980,000.00 Less Cost of Goods Sold 1,500,000.00 1,050,000.00 Gross Profit 2,450,000.00 1,930,000.00 Less: Other Expenses 800,000.00 1,650,000.00 700,000.00 Operating Income Less: Interest Expense 1,230,000.00 30,000.00 25,000.00 Net Income 1,620,000.00 1,205,000.00
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