The following condensed information was reported by Peabody Toys, Inc., for 2018

Question

The following condensed information was reported by Peabody Toys, Inc., for 2018 and 2017 $ 5,9e0$4,900 138 Net sales 216 06 Current assets Property, plant, and equipment (net) 870820 1:7301,380 $2,600$2,200 Current liabilities Long-term liabilities Paid-in capital $ 1,160816 820 400 170 $ 2,600$2,200 820 400 220 Liabilities and shareholders' equity Required: 1. Determine the following ratios for 2018: (Round your percentoge answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2018. (Enter your answer in dollars.) on sales 1c Return on s ds paid

Explanation / Answer

Answer:

Profit margin on sales

3.66%

return on assets

9.00%

Return on share holder's Equity

36.30%

Devidend Paid

166

Working notes for the above answer:

1

Profit margin on sales

=Net inomce/ net sales

=216 /5900

=3.66%

2

return on assets

=net income / Average assets

=216 / (2600+22000)/2

=216/2400

=9%

3

Return on share holder's Equity

=net income / Average share holder's Equity

=216 /(620+570)/2

=216/(620+570)/2

=36.30%
2

Devidend Paid

Profit margin on sales

3.66%

return on assets

9.00%

Return on share holder's Equity

36.30%

Devidend Paid

166

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