Answer:
The answer is shown below:
Explanation:
The computations are shown below:
1. Gross Profit margin in percentage is
= Gross profit ÷ Net sales × 100
= $9 million ÷ $14.1 million
= 63.83%
2. Net Profit margin percentage
= Net income available to common stockholders ÷ Net sales × 100
= $4.8 million ÷ $14.1 million
= 34.04%
3. Operating Profit margin percentage is
= EBIT ÷ Net sales × 100
= $7.2 million ÷ $14.1 million
= 51.06%
Basic Earning Power in percentage
= EBIT ÷ Total Assets
= $7.2 million ÷ $54.1 million
= 13.31%
Return on assets is
= Net Income ÷ Average Assets
= $4.8 million ÷ $54.1 million
= 8.87%
Return on Equity is
= Net income ÷ common stockholders' equity
= $4.8 million ÷ $22.6 million
= 21.24%
And,
Dividend Payout ratio is
= common stock dividends ÷ net income available to common stockholders
= $2.8 million ÷ $4.8 million
= 58.33%
