Reference no: EM132479871

The comparative financial statements prepared at December 31, 2015, for Prince Company showed following summarized data:

                                                       2015                                     2014

Income statement:

Sales revenue                                  $190,000"                      $167,000

Cost of goods sold                            112,000                          100,000

Gross pro?t                                         78,000                       67,000

Operating expenses and interest expense 56,000                      53,000

Pretax income                                     22,000                      14,000

Income tax                                         8,000                        4,000

Net income                                         $ 14,000                  $ 10,000

Balance sheet:

Cash                                             $ 4,000                          $ 7,000

Accounts receivable (net)                14,000                            18,000

Inventory                                   40,000                                 34,000

Operational assets (net)           45,000                                     38,000

                                              $103,000                             97,000

Current liabilities (no interest)  $ 16,000                                      $ 17,000

Long-term liabilities (10% interest)  45,000                                   45,000

Common stock {par $5)               30,000                                   30,000

Retained earnings                     12,000                                    5,000

                                               $103,000                             $ 97,000

Question 1: What was the gross profit percentage?

Question 2: What was the return on assets?

Question 3: Compute the financial leverage percentage?