Asked by Brittany Hoffman on May 03, 2024

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The records of Washington Company showed the following:
The records of Washington Company showed the following:    *10,000 shares outstanding at 1/1 and at 12/31;current market price,$30 **Including income tax;income tax rate is 30% Calculate each of the following ratios: A.Return on assets B.Return on equity C.Net profit margin D.Earnings per share *10,000 shares outstanding at 1/1 and at 12/31;current market price,$30
**Including income tax;income tax rate is 30%
Calculate each of the following ratios:
A.Return on assets
B.Return on equity
C.Net profit margin
D.Earnings per share

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the number of outstanding shares of its common stock.

  • Illustrate the ability to process and decode concluding financial ratios with provided data, covering turnover and average days ratios.
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ZK
Zybrea KnightMay 05, 2024
Final Answer :
A.Return on assets = $17,000 ÷ $330,000 = 5.2%.
B.Return on equity = $17,000 ÷ $200,000 = 8.5%.
C.Net profit margin = 17,000 ÷ $100,000 = 17%.
D.Earnings per share = $17,000 ÷ 10,000 = $1.70.