Question 1 - Asset turnover

A company reports the following:

Sales                                                                                   $4,400,000

Average total assets (excluding long-term investments)           2,000,000

Required - Determine the asset turnover ratio.

Question 2 - Return on total assets

A company reports the following income statement and balance sheet information for the current year:

Net income - $410,000

Interest expense - 90,000

Average total assets - 5,000,000

Required - Determine the return on total assets.

Q3. Common Stockholders' Profitability Analysis

A company reports the following:

Net income - $1,000,000

Preferred dividends - 50,000

Average stockholders' equity - 6,250,000

Average common stockholders' equity - 3,800,000

Determine:

(a) The return on stockholders' equity and (b) The return on common stockholders' equity.

a. Return on stockholders' equity

b. Return on common stockholders' equity