Suppose selected 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). 2020 2019Net sales $4,950 $4,900Cost of goods sold 3,300 3,701Net income 65 181Accounts receivable 65 109Inventory 1,250 1,350Total assets 2,850 3,250Total common stockholders’ equity 920 1,060Compute the following ratios for 2020. (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%(b)Asset turnovertimes(c)Return on assets(d)Return on common stockholders' equity(e)Gross profit rate

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 27MCQ

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Suppose selected 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).

	2020	2019
Net sales	$4,950	$4,900
Cost of goods sold	3,300	3,701
Net income	65	181
Accounts receivable	65	109
Inventory	1,250	1,350
Total assets	2,850	3,250
Total common stockholders’ equity	920	1,060

Compute the following ratios for 2020. (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
%
(b)
Asset turnover
times
(c)
Return on assets
(d)
Return on common stockholders' equity
(e)
Gross profit rate

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