Accounting

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...