Solution-Compute the profit margin and return on assets

Compute the profit margin and return on assets

Reference no: EM131585213

Question - Selected comparative statement data for Queen Products Company are presented below. All balance sheet data are as or December 31.

	2017	2016
Net sales	$764,500	$723,000
Cost of goods sold	477,500	438,000
Interest expense	7,500	5,700
Net Income	54,000	40,000
Accounts receivable	120,000	106,000
Inventory	80,300	76,300
Total assets	575,000	504,300
Total common stockholders' equity	426,200	322,100

Compute the following ratios for 2017.

Profit margin
Asset turnover
Return on assets
Return on common stockholders' equity

Reference no: EM131585213

Questions Cloud

What is the stock expected price five years from now : The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?

Hypothetical to support your position : Take a position for or against this statement: It is better to be approximately right than exactly wrong. Provide at least two reasons and one hypothetical to support your position

Complete a competitive profile matrix : Complete a Competitive Profile Matrix (CPM) for JP Morgan Chase, using at least 12 factors and two major competitors.

The firm uses the capm to estimate the cost of equity : The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock.

Compute the profit margin and return on assets : Selected comparative statement data for Queen Products Company are presented below. Compute the following ratios for 2017: Profit margin

Describe a real or hypothetical situation : Describe a real or hypothetical situation that requires someone to make a policy decision - Provide at least two reasons for your selection of the forecasting approach

What is company current stock price : The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, What is the company's current stock price?

Institutions contribute to establishment of national culture : How do institutions contribute to the establishment of a national culture? Explain in the context of a nation/s of your choice.

What would happen to the stock required rate of return : What is the stock's beta? If the market risk premium increased to 9%, what would happen to the stock's required rate of return?

User Account

All Pages

Compute the profit margin and return on assets

Reference no: EM131585213

Reference no: EM131585213

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT