Ex. 193
Selected data for Nancy's Store appear below.
2014 2013
Net sales€640,000€520,000
Cost of goods sold525,000400,000
Net income64,00035,000
Inventory at end of year65,00085,000
Accounts receivable at end of year90,00070,000
Instructions
Compute the following for 2014:
(a)Profit margin.
(b)Inventory turnover.
(c)Accounts receivable turnover.
Ex. 194
Selected financial statement data for Holmes Company are presented below.
Net sales$1,200,000
Cost of goods sold700,000
Interest expense10,000
Net income180,000
Total assets (ending)850,000
Total ordinary shareholders' equity (ending)650,000
Total assets at the beginning of the year were $750,000; total ordinary shareholders' equity was $550,000 at the beginning of the period.
Instructions
Compute each of the following:
(a)Asset turnover
(b)Profit margin
(c)Return on assets
(d)Return on ordinary shareholders' equity