Calculate the rate of return for the following ratios.
The following information has been taken from the financial statements of the Gaines Company. Gaines Company has only issued common stock.
|
Net income
|
$ 70,000
|
|
Total assets, January 1, 20X9
|
500,000
|
|
Total liabilities, December 31, 20X9
|
175,000
|
|
Net sales
|
900,000
|
|
Interest expense
|
20,000
|
|
Current assets, December 31, 20X9
|
150,000
|
|
Current liabilities, December 31, 20X9
|
75,000
|
|
Income tax expense
|
25,000
|
|
Total assets, December 31, 20X9
|
575,000
|
|
Stockholders' equity, January 1, 20X9
|
300,000
|
|
Stockholders' equity, December 31, 20X9
|
400,000
|
|
Common shares outstanding for 20X9
|
100,000
|
Use the given data for the Gaines Company to calculate the following ratios for 20X9:
a) rate of return on total assets
b) rate of return on common stockholders' equity
c) rate of return on net sales
d) times-interest-earned ratio
e) debt ratio, December 31, 20X9
f) current ratio, December 31, 20X9
g) earnings per share of common stock