Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31.                                                                             _2017              2016_ Net sales                                                               $1,160,000       $1,120,000 Cost of goods sold                                                     700,000        640,000 Interest expense                                                         15,000           10,000 Net income                                                                 150,000        140,000 Accounts receivable                                                   140,000        120,000 Inventory                                                                     100,000          95,000 Total assets                                                                780,000        700,000 Preferred stock (6%)                                                  200,000        200,000 Total stockholders' equity                                          630,000        525,000 Instructions Compute the following ratios for 2017. (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on common stockholders' equity

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Asked Mar 3, 2020
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Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31. 

                                                                           _2017              2016_

Net sales                                                               $1,160,000       $1,120,000

Cost of goods sold                                                     700,000        640,000

Interest expense                                                         15,000           10,000

Net income                                                                 150,000        140,000

Accounts receivable                                                   140,000        120,000

Inventory                                                                     100,000          95,000

Total assets                                                                780,000        700,000

Preferred stock (6%)                                                  200,000        200,000

Total stockholders' equity                                          630,000        525,000

Instructions

Compute the following ratios for 2017.

(a) Profit margin.

(b) Asset turnover.

(c) Return on assets.

(d) Return on common stockholders' equity

 

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