Response to the following problem:
The following condensed information was reported by Peabody Toys, Inc., for 2016 and 2015:
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($ in 000s)
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2016
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2015
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Income statement Information
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|
|
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Net sales
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$5,200
|
$4,200
|
|
Net income
|
180
|
124
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Balance sheet information
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|
|
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Current assets
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$ 800
|
$ 750
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Property, plant, and equipment (net)
|
1.100
|
950
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Total assets
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$1,900
|
$1,700
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Current liabilities
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$ 600
|
$ 450
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Long-term liabilities
|
750
|
750
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Paid-in capital
|
400
|
400
|
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Retained earnings
|
150
|
100
|
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Liabilities and shareholders' equity
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$1,900
|
$1,700
|
Required:
1. Determine the following ratios for 2016:
a. Profit margin on sales.
b. Return on assets.
c. Return on shareholders' equity.
2. Determine the amount of dividends paid to shareholders during 2016.