Company s condensed income statement for 2016 and

December 31 2016 #2432

Company’s condensed income statement for 2016 and December 31, 2016, balance sheet
follow:Income StatementSales (net) ......... $ 304,400Cost of goods sold ...... (183,600)Gross
profit ......... $ 120,800Operating expenses ..... (82,000)Operating income ....... $ 38,800Interest
expense ....... (7,000)Income before income taxes .. $ 31,800Income taxes ............. (10,000)Net
income ........ $ 21,800Balance SheetAdditional information: The common stock was
outstanding the entire year and is selling for $16 per share at year-end. On January 1, 2016, the
inventory was $21,500, the total assets were $224,000, the accounts payable were $18,800,
and the total shareholders’ equity was $130,800. The company operates on a 365-day
business year.Required:Compute the following ratios for Miller (round all computations to two
decimal places):(1) Gross profit margin,(2) Operating profit margin,(3) Net profit margin,(4) Total
asset turnover,(5) Return on total assets,(6) Return on common equity,(7) Current,(8) Inventory
turnover (in days), and(9) Payables turnover (in days).View Solution:
Company s condensed income statement for 2016 and December 31 2016

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