Comparative financial statements for the Rahul Corporation for the year ended December 31 are given below. A total of 500,000 shares of stock were outstanding. The market value of the company's stock at the end of the year was $25.
Comparative Income Statement and Reconciliation of Retained Earnings
For the Year Ended December 31, 2012 and 2011
Required:
Compute the following financial ratios for the year 2012:
a. Gross margin percentage.
b. Earnings per share.
c. Price earnings ratio.
d. Return on total assets.
e. Return on common stockholders equity.
Comment on the results.