Calculate the return on common equity

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Problem - Morris Corporation has the following information on its balance sheets: Cash = $40, accounts receivable = $30, inventories =$100, net fixed assets = $500, accounts payable=$20 accruals = $10, short-term debt (matures in less than a year) = $25, long-term debt = $200, and total common equity = $415. Its income statement reports: Sales = $820, costs of goods sold (excluding depreciation) = $450, depreciation = $50, other operating expenses = $100, interest expense = $20, and tax rate = 25%. Calculate the following ratios: Net profit margin, operating profit margin, basic earning power ratio, return on total assets, and return on common equity.

Reference no: EM132725863

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