Answer:
a) 65%
b) 11.4%
c) 25%
d) $25 per share
Explanation:
(a) Ratio of sales to assets = Sales revenue / Total assets
= $1,300,000/ $2,000,000 = 65.0%
(b) Rate earned on total assets = Annual net income / Average total assets
= $250,000 / $2,200,000 = 11.4%
(c) Rate earned on common stockholder's equity = Net Income / Average common stockholder's equity
= $250,000 / $1,000,000 = 25%
(d) Earning per share on common stock = Net Income / Share of common stock outstanding
= $250,000 / 10,000 = $25 per share
