The following condensed information is reported by Sporting Collectibles. 2021 2020Income Statement InformationSales revenue $ 14,820,000 $ 9,400,000Cost of goods sold 9,544,080 6,900,000Net income 418,000 348,000 Balance Sheet InformationCurrent assets $ 1,700,000 $ 1,600,000Long-term assets 2,300,000 2,000,000Total assets $ 4,000,000 $ 3,600,000 Current liabilities $ 1,300,000 $ 1,000,000Long-term liabilities 1,400,000 1,400,000Common stock 900,000 900,000Retained earnings 400,000 300,000Total liabilities and stockholders’ equity $ 4,000,000 $ 3,600,000Required: 1. Calculate the following profitability ratios for 2021: a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity. 2. Determine the amount of dividends paid to shareholders in 2021.
The following condensed information is reported by Sporting Collectibles.
2021 2020
Income Statement Information
Sales revenue $ 14,820,000 $ 9,400,000
Cost of goods sold 9,544,080 6,900,000
Net income 418,000 348,000
Balance Sheet Information
Current assets $ 1,700,000 $ 1,600,000
Long-term assets 2,300,000 2,000,000
Total assets $ 4,000,000 $ 3,600,000
Current liabilities $ 1,300,000 $ 1,000,000
Long-term liabilities 1,400,000 1,400,000
Common stock 900,000 900,000
Total liabilities and
Required:
1. Calculate the following profitability ratios for 2021:
a. Gross profit ratio.
b. Return on assets.
c. Profit margin.
d. Asset turnover.
e. Return on equity.
2. Determine the amount of dividends paid to shareholders in 2021.
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