Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Selected comparative statement data for Isabel Wedding Consultant are presented below. All
balance sheet data are as of December 31.
Net sales
Cost of goods sold
2008
2007
$800,000
$720,000
480,000
440,000
7,000
5,000
Interest expense
Net income
60,000 42,000
Accounts receivable
120,000 100,000
Inventory
85,000
75,000
Total assets
580,000
500,000
Total common stockholders' equity 430,000
325,000
Instructions:
Compute the following ratios for 2008:
(a) Profit margin.
(b) Asset turnover.
(c) Return on assets.
(d) Return on common stockholders' equity.
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Transcribed Image Text:Selected comparative statement data for Isabel Wedding Consultant are presented below. All balance sheet data are as of December 31. Net sales Cost of goods sold 2008 2007 $800,000 $720,000 480,000 440,000 7,000 5,000 Interest expense Net income 60,000 42,000 Accounts receivable 120,000 100,000 Inventory 85,000 75,000 Total assets 580,000 500,000 Total common stockholders' equity 430,000 325,000 Instructions: Compute the following ratios for 2008: (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on common stockholders' equity.
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