FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Selected comparative statement data for Rawan Products Company. All balance sheet data
are as of December 31.
2018
2017
$750,000
470,000
8,000
50,000
120,000
85,000
680,000
430,000
$730,000
440,000
5,000
42,000
100,000
75,000
600,000
325,000
Net sales
Cost of goods sold
Interest expense
Net income
Accounts receivable
Inventory
Total assets
Total common stockholders' equity
Requirements:
1- Compute the following ratios for 2018.
(a) Profit margin.
(b) Asset turnover.
(c) Return on assets.
(d) Return on common stockholders' equity.
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Transcribed Image Text:Questions: Selected comparative statement data for Rawan Products Company. All balance sheet data are as of December 31. 2018 2017 $750,000 470,000 8,000 50,000 120,000 85,000 680,000 430,000 $730,000 440,000 5,000 42,000 100,000 75,000 600,000 325,000 Net sales Cost of goods sold Interest expense Net income Accounts receivable Inventory Total assets Total common stockholders' equity Requirements: 1- Compute the following ratios for 2018. (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on common stockholders' equity.
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