Chapter 16, Problem 9E

To determine

Ratios are computed based on the figures reflecting in the financial statement of the company. These ratios are useful tool for analyzing the various aspects of company’s performance.

Requirement1:

The Gross Margin percentage of the company shall be determined.

Requirement2:

To determine

Computation of Net Profit margin percentage for the company.

Requirement3:

To determine

Computation of Return on total assets for the company.

Requirement4:

To determine

Computation of Return on Equity for the company.

Requirement5:

To determine

Financial leverage to be positive or negative for the above information shall be determined.