Submitted by: Submitted by castoes5
Views: 214
Words: 1970
Pages: 8
Category: Other Topics
Date Submitted: 11/05/2012 05:11 AM
Week 5
2005
Sales $14,317
-Cost of Goods Sold $11,269
=Gross margin $3,048
÷ Sales $14,317
= Gross margin 0.213
21.30%
Net earnings 422
÷ Sales $14,317
= Return on sales 0.029
2.90%
Compute avg. assets:
Tot. assets beg. of year $8,181
+Tot. assets end of year $8,301
÷ 2 $16,482
= Average assets $8,241
Net earnings $422
÷ Average assets $8,241
= Return on investment 0.051
5.12%
Net earnings $422
÷ Total stockholders' equity $1,745
= Return on equity 0.242
24.20%
Current assets $4,763
÷ Current liabilities $ 4,354
= Current ratio 1.09%
Compute total liabilities:
Total liabilities & stockholders' equity $8,301
- Total stockholders' equity $1,745
= Total liabilities $6,556
Total liabilities $6,556
÷ Total assets $8,301
= Debt to assets ratio 0.79
Sales $14,317
÷ Average assets (see above) $8,241
= Assets turnover ratio 1.73
2007
Sales $19,408
-Cost of goods sold $16,517
=Gross Margin $2,891
÷ Sales $19,408
= Gross margin 0.149
14.90%
Net earnings 640
÷ Sales $19,408
= Return on sales 0.033
3.30%
Compute avg. assets:
Tot. assets...