10points Time Remaining 29 minutes 31 seconds 00:29:31 The 2021 income statement for Anderson TV and Appliance reported net sales of $290,000 and net income of $70,000. Average total assets for 2021 was $1,000,000. Shareholders’ equity at the beginning of the year was $600,000 and $30,000 was paid to shareholders as dividends. There were no other shareholders’ equity transactions that occurred during the year. Calculate the profit margin on sales, return on assets, and return on equity for 2021.

10points Time Remaining 29 minutes 31 seconds 00:29:31 The 2021 income statement for Anderson TV and Appliance reported net sales of $290,000 and net income of $70,000. Average total assets for 2021 was $1,000,000. Shareholders’ equity at the beginning of the year was $600,000 and $30,000 was paid to shareholders as dividends. There were no other shareholders’ equity transactions that occurred during the year. Calculate the profit margin on sales, return on assets, and return on equity for 2021.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.7BE

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Time Remaining 29 minutes 31 seconds

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The 2021 income statement for Anderson TV and Appliance reported net sales of $290,000 and net income of $70,000. Average total assets for 2021 was $1,000,000. Shareholders’ equity at the beginning of the year was $600,000 and $30,000 was paid to shareholders as dividends. There were no other shareholders’ equity transactions that occurred during the year.

Calculate the profit margin on sales, return on assets, and return on equity for 2021.

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