Consider the following data from the financial statements of Stevenson Company, which has a tax rate of 30%: Year 2 Year 1 Sales $ 21,000,000 $ 19,500,000 Cost of goods sold 7,413,000 6,630,000 Net income 1,890,000 1,560,000 Interest expenses 164,500 144,500 Income taxes 220,286 196,286 Current assets 2,250,000 2,115,000 Total assets 5,050,000 4,760,000 Total liabilities 760,000 750,000 Total stockholders' equity 4,290,000 4,010,000 1. Refer to the information above. What was the gross margin percentage for Year 2? 2. Refer to the information above. What was the net profit margin percentage for Year 2? 3. Refer to the information above. What was the return on total assets for Year 2? 4. Refer to the information above. What was the return on equity for Year 2?
Consider the following data from the financial statements of Stevenson Company, which has a tax rate of 30%: Year 2 Year 1 Sales $ 21,000,000 $ 19,500,000 Cost of goods sold 7,413,000 6,630,000 Net income 1,890,000 1,560,000 Interest expenses 164,500 144,500 Income taxes 220,286 196,286 Current assets 2,250,000 2,115,000 Total assets 5,050,000 4,760,000 Total liabilities 760,000 750,000 Total stockholders' equity 4,290,000 4,010,000 1. Refer to the information above. What was the gross margin percentage for Year 2? 2. Refer to the information above. What was the net profit margin percentage for Year 2? 3. Refer to the information above. What was the return on total assets for Year 2? 4. Refer to the information above. What was the return on equity for Year 2?
Financial Management: Theory & Practice
16th Edition
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Chapter2: Financial Statements, Cash Flow,and Taxes
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Problem 15P: Use the following income statement of Elliott Game Theory Consulting to determine its net operating...
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Consider the following data from the financial statements of Stevenson Company, which has a tax rate of 30%:
| Year 2 | Year 1 | |
|---|---|---|
| Sales | $ 21,000,000 | $ 19,500,000 |
| Cost of goods sold | 7,413,000 | 6,630,000 |
| Net income | 1,890,000 | 1,560,000 |
| Interest expenses | 164,500 | 144,500 |
| Income taxes | 220,286 | 196,286 |
| Current assets | 2,250,000 | 2,115,000 |
| Total assets | 5,050,000 | 4,760,000 |
| Total liabilities | 760,000 | 750,000 |
| Total |
4,290,000 | 4,010,000 |
1. Refer to the information above. What was the gross margin percentage for Year 2?
2. Refer to the information above. What was the net profit margin percentage for Year 2?
3. Refer to the information above. What was the return on total assets for Year 2?
4. Refer to the information above. What was the return on equity for Year 2?
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