Question

in 2015 the financial statements of Ultimate Medical Center report a 500000 and total revenues and 145000 and net income the balance sheet showed net access of 350000 calculate the operating margin ratio and the return on Equity rate for Ultimate Medical Center​

Answer 1

Price-sales ratio = Price per share/Sales per share .... *calculate each as a percentage of total sales to determine the the Net Profit ... financial managers using a common-size balance sheet.

Answer 2

For Ultimate Medical Center:

+ Operating margin ratio: 29.00%;

+ Return on equity ratio: 41.43%.

Step-by-step explanation:

* The operating margin ratio of Ultimate Medical center is calculated as:

Ultimate Medical Center's net income/ Ultimate Medical Center's revenue = 145,000/500,000 = 29.00%.

* The Return on equity ratio of Ultimate Medical center is calculated as:

Ultimate Medical Center's net income/ Ultimate Medical Center's net asset = 145,000/350,000 = 41.43%.

* Thus, the result is:

Operating margin ratio of Ultimate Medical Center : 29.00%;

Return on equity ratio of Ultimate Medical Center: 41.43%.