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
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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

 

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