The following amounts were taken from the financial statements of Sheffield Company: 2020 2019 Total assets $910000 $1040000 Net sales 880000 690000 Gross profit 351000 319000 Net income 161040 125000 Weighted average number of common shares outstanding 80000
The following amounts were taken from the financial statements of Sheffield Company: 2020 2019 Total assets $910000 $1040000 Net sales 880000 690000 Gross profit 351000 319000 Net income 161040 125000 Weighted average number of common shares outstanding 80000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.16P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Question
The following amounts were taken from the financial statements of Sheffield Company:
The profit margin for 2020 is
2020
|
2019
|
|
---|---|---|
Total assets
|
$910000
|
$1040000
|
Net sales
|
880000
|
690000
|
Gross profit
|
351000
|
319000
|
Net income
|
161040
|
125000
|
Weighted average number of common shares outstanding
|
80000
|
80000
|
Market price of common stock
|
$30
|
$41
|
The profit margin for 2020 is
39.9%.
9.1%.
17.7%.
18.3%.
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