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The Following Is Selected Balance Sheet and Income Statement Information

Question 60

Essay

The following is selected balance sheet and income statement information for Mario Company.
 Current  Assets  Gross Profit  on Sales  Net  Sales  Net  Income  Average  Total Assets  Average Common  Stockholders’ Equity 81$48,06$200,680$450,009$45,216$273,710$151,668\begin{array}{|c|c|c|c|c|c|c|}\hline & \begin{array}{l}\text { Current } \\\text { Assets }\end{array} & \begin{array}{c}\text { Gross Profit } \\\text { on Sales }\end{array} & \begin{array}{l}\text { Net } \\\text { Sales }\end{array} & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Average } \\\text { Total Assets }\end{array} & \begin{array}{l}\text { Average Common } \\\text { Stockholders' Equity }\end{array} \\\hline 81 & \$ 48,06 & \$ 200,680 & \$ 450,009 & \$ 45,216 & \$ 273,710 & \$ 151,668 \\\hline\end{array}
Compute the following ratios:
a. Gross profit percentage
b. Return on sales
c. Asset turnover
d. Return on assets
e. Return on common stockholders' equity (Mario Company has no preferred stock)

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a. $200,680 / $450,009 = 44.59...

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