Number 10 needs to be solved! With explaining 6 Financial statements for Askew I

Question

Number 10 needs to be solved! With explaining 6 Financial statements for Askew Industries for 2018 are shown below (in $000's) 2018 Income Statesent 2 points Sales Cost of goods sold Gross profit Operating expenses 8,800 (6,150) 2,650 (1,850) (140) $ 396 Dec. 31 2018 2017 $ 540 540 340 Inventory and 1.400 3,220 $2,820 Liabilities and Shareholders Equity Current liabilities Bonds payable Paid-in capital 740 490 ,100 1,100 540 690 $3,220 $2,820 540 Required: Calculate the following ratios for 2018. (Consider 365 days a year Do not round intermediate calculations and round you answers to 2 decimal places.)

Explanation / Answer

Return on shareholder's equity (using the DuPoint framework) Net income /sale 396/8800= 0.045 Sale/avg total assets 8800/3020 =2.91390 avg total assets /avg shareholders equity 3020/1305 = 2.31417 return on shareholders equity (0.045*2.91390*2.31417) = 30.34% Avg total assets = 3220+2820/2 = 3020 avg shareholder's equity = 540+840+540+690/2 = 1305 Share holders equity = common stock+retained earning

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