Selected data from Carmen Company at year-end are presented below. Total assets $ 2 , 000 , 000 Average total assets $ 2 , 200 , 000 Net income $ 250 , 000 Sales $ 1 , 300 , 000 Average common stockholders’ equity $ 1 , 000 , 000 Net cash provided by operating activities $ 275 , 000 Shares of common stock outstanding 10 , 000 Long-term investments $ 400 , 000 \begin{array}{lr} ext { Total assets } & \$ 2,000,000 \ ext { Average total assets } & \$ 2,200,000 \ ext { Net income } & \$ 250,000 \ ext { Sales } & \$ 1,300,000 \ ext { Average common stockholders ' equity } & \$ 1,000,000 \ ext { Net cash provided by operating activities } & \$ 275,000 \ ext { Shares of common stock outstanding } & 10,000 \ ext { Long-term investments } & \$ 400,000\end{array} Total assets Average total assets Net income Sales Average common stockholders’ equity Net cash provided by operating activities Shares of common stock outstanding Long-term investments $2 , 000 , 000 $2 , 200 , 000 $250 , 000 $1 , 300 , 000 $1 , 000 , 000 $275 , 000 10 , 000 $400 , 000 Calculate:(a) Asset turnover ratio(b) Return on total assets(c) Return on common stockholders' equity(d) Earnings per share on common stock.Assume the company had no preferred stock or interest expense.Round dollar values to two decimal places and other final answers to one decimal place.

Question

Selected data from Carmen Company at year-end are presented below.​​    Total assets  $ 2 , 000 , 000  Average total assets  $ 2 , 200 , 000  Net income  $ 250 , 000  Sales  $ 1 , 300 , 000  Average common stockholders’ equity  $ 1 , 000 , 000  Net cash provided by operating activities  $ 275 , 000  Shares of common stock outstanding  10 , 000  Long-term investments  $ 400 , 000 \begin{array}{lr}	ext { Total assets }  &  \$ 2,000,000 \	ext { Average total assets }  &  \$ 2,200,000 \	ext { Net income }  &  \$ 250,000 \	ext { Sales }  &  \$ 1,300,000 \	ext { Average common stockholders '  equity }  &  \$ 1,000,000 \	ext { Net cash provided by operating activities }  &  \$ 275,000 \	ext { Shares of common stock outstanding }  &  10,000 \	ext { Long-term investments }  &  \$ 400,000\end{array}  Total assets   Average total assets   Net income   Sales   Average common stockholders’ equity   Net cash provided by operating activities   Shares of common stock outstanding   Long-term investments  ​ $2 , 000 , 000 $2 , 200 , 000 $250 , 000 $1 , 300 , 000 $1 , 000 , 000 $275 , 000 10 , 000 $400 , 000 ​   Calculate:(a) Asset turnover ratio(b) Return on total assets(c) Return on common stockholders' equity(d) Earnings per share on common stock.​Assume the company had no preferred stock or interest expense.​Round dollar values to two decimal places and other final answers to one decimal place.

Alexa Haight · Accepted Answer

Final Answer : With the information provided, the profitability ratios that can be calculated are as follows:​   ​   ​

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