Selected comparative statement data for Isabel Wedding Consultant are presented below. All balance sheet data are as of December 31.
|
|
2008
|
2007
|
|
Net sales
|
$800,000
|
$720,000
|
|
Cost of goods sold
|
480,000
|
440,000
|
|
Interest expense
|
7,000
|
5,000
|
|
Net income
|
60,000
|
42,000
|
|
Accounts receivable
|
120,000
|
100,000
|
|
Inventory
|
85,000
|
75,000
|
|
Total assets
|
580,000
|
500,000
|
|
Total common stockholders' equity
|
430,000
|
325,000
|
Instructions
Compute the following ratios for 2008:
(a) Profit margin
(b) Asset turnover
(c) Return on assets
(d) Return on common stockholders' equity