Question

The following data were taken from the financial statements of The Amphlett Corporation, which is all equity financed. 2012 2013 Net sales $147,860 $163,585 Net income 26,765 30,340 Total assets 191,225 212,440 Shareholders' equity 101,975 121,165 Required Calculate the following ratios for 2012 and 2013: 2012 2013 a. Return on equity (round to one decimal place) Answer 0 % Answer 0 % b. Return on assets (round to one decimal place) Answer 0 % Answer 0 % c. Return on sales (round to one decimal place) Answer 0 % Answer 0 % d. Total assets to shareholders' equity (financial leverage) (round to two decimal places) Answer 0 Answer 0 e. Asset turnover (round to two decimal places) Answer 0 Answer 0

Answer 1

2012 - 2013

a. Return on equity 26,2% - 25,0%

b. Return on assets 14,0% - 14,3%

c. Return on sales 18,1% - 18,5%

d. Total assets to shareholders' equity 1,88 - 1,75

e. Asset turnover 0,77 - 0,77

Step-by-step explanation:

2012 2013

TOTAL ASSETS $191.225 $212.440

TOTAL EQUITY $101.975 $121.165

Income Statement 2012 2013

Sales $147.860 163.585

Net Income after Taxes $26.765 30.340