Question 1 - Asset turnover
A company reports the following:
Sales $4,400,000
Average total assets (excluding long-term investments) 2,000,000
Required - Determine the asset turnover ratio.
Question 2 - Return on total assets
A company reports the following income statement and balance sheet information for the current year:
Net income - $410,000
Interest expense - 90,000
Average total assets - 5,000,000
Required - Determine the return on total assets.
Q3. Common Stockholders' Profitability Analysis
A company reports the following:
Net income - $1,000,000
Preferred dividends - 50,000
Average stockholders' equity - 6,250,000
Average common stockholders' equity - 3,800,000
Determine:
(a) The return on stockholders' equity and (b) The return on common stockholders' equity.
a. Return on stockholders' equity
b. Return on common stockholders' equity