Reference no: EM132776705
Show below are selected data from the financial statements of Pink corporation. Euro amounts are in millions (except for the per share data).
Income statement data:
Net sales €2,000
Cost of goods sold €1,000
Operating expenses €800
Net income €100
Balance sheet data:
Average total equity €4,000
Average total assets €6,000
Pink reported earning per share for the year of €2 and paid cash dividends of €1 per share. At year end, the Grove Journal listed Pink's capital stock as trading at 50€ per share.
Answer all questions and show all your calculations and formulas used.
Problem 1: What was pink gross profit rate?
Problem 2: What was Pink Operating income in millions?
Problem 3: What was pink return on Assets?
Problem 4: What was Pink return on Equity?
Problem 5: Briefly explain what do the rations return on assets and return on equity show about a company?