Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31.                                                                             _2017              2016_ Net sales                                                               $1,160,000       $1,120,000 Cost of goods sold                                                     700,000        640,000 Interest expense                                                         15,000           10,000 Net income                                                                 150,000        140,000 Accounts receivable                                                   140,000        120,000 Inventory                                                                     100,000          95,000 Total assets                                                                780,000        700,000 Preferred stock (6%)                                                  200,000        200,000 Total stockholders' equity                                          630,000        525,000 Instructions Compute the following ratios for 2017. (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on common stockholders' equity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31. 

                                                                           _2017              2016_

Net sales                                                               $1,160,000       $1,120,000

Cost of goods sold                                                     700,000        640,000

Interest expense                                                         15,000           10,000

Net income                                                                 150,000        140,000

Accounts receivable                                                   140,000        120,000

Inventory                                                                     100,000          95,000

Total assets                                                                780,000        700,000

Preferred stock (6%)                                                  200,000        200,000

Total stockholders' equity                                          630,000        525,000

Instructions

Compute the following ratios for 2017.

(a) Profit margin.

(b) Asset turnover.

(c) Return on assets.

(d) Return on common stockholders' equity

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education