Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). 2022 2021 Net sales $4,950.2 $5,700.8 Cost of goods sold 3,500.5 3,800.7 Net income 75.2 170.7 Accounts receivable 65.0 103.3 Inventory 1,150.0 1,350.1 Total assets 2,950.1 3,250.1 Total common stockholders’ equity 970.9 1,140.9 Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) (a) Profit margin enter profit margin in percentages rounded to 1 decimal place % (b) Asset turnover enter asset turnover in times rounded to 2 decimal places times (c) Return on assets enter return on assets in percentages rounded to 1 decimal place % (d) Return on common stockholders’ equity enter return on common stockholders' equity in percentages rounded to 1 decimal place % (e) Gross profit rate enter gross profit rate in percentages rounded to 1 decimal place % how to compute ratios for Profit margin asset turnover return on assets return on common stockholders equity gross profit rate

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 2TIF: Real-world annual report The financial statements for Nike, Inc. (NKE), are presented in Appendix E...

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Question

Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).

	2022	2021
Net sales	$4,950.2	$5,700.8
Cost of goods sold	3,500.5	3,800.7
Net income	75.2	170.7
Accounts receivable	65.0	103.3
Inventory	1,150.0	1,350.1
Total assets	2,950.1	3,250.1
Total common stockholders’ equity	970.9	1,140.9

Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%)

(a)	Profit margin	enter profit margin in percentages rounded to 1 decimal place	%
(b)	Asset turnover	enter asset turnover in times rounded to 2 decimal places	times
(c)	Return on assets	enter return on assets in percentages rounded to 1 decimal place	%
(d)	Return on common stockholders’ equity	enter return on common stockholders' equity in percentages rounded to 1 decimal place	%
(e)	Gross profit rate	enter gross profit rate in percentages rounded to 1 decimal place	%