Question

W S14-9 (similar to) i Balance sheets - x bn Help Harrison's, a home-improvement store chain, reported these summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Read the requirements. First identify the formula, then calculate the gross profit percentage. (Round your answer to one decimal place.) Gross profit I Net sales = Gross profit percentage $ 22,121,250 / $ 43,891,250 50.4 Accounts receivable Inventory 100,300 4,640,000 505,000 397,200 4,140,000 404,500 i Income statement Other current assets Total current assets 6,745,300 $ 12,600,000 6,006,700 11,600,000 Other noncurrent assets Harrison's b. Calculate the operating income percentage for 2017 $ 19,345,300 $ 17,606,700 Total assets First identify the formula, then calculate the operating income percentage. (Round your answer to one decimal place.) Income Statement For The Year Ended December 31, 2017 Liabilities Operating income 17,036,000 , 1 $ Net sales 43,891,250 = = Operating income percentage 38.8 $ 2017 43,891,250 21,770,000 Current liabilities: Accounts payable Notes payable Sales revenues c. Calculate the rate of return on net sales for 2017 First identify the formula, then calculate the rate of return on net sales. (Round your answer to one decimal place.) 3,000,000 $ 895,000 605,000 2,800,000 657,000 193,000 Less: Cost of goods sold Gross profit Accrued liabilities Net sales 43,891,250 Net income 14,848,000 Total current liabilities $ 22,121,250 5,085,250 = = Rate of return on net sales 33.8 3,650,000 4,214,000 $ / 4,500,000 $ 4,298,000 $ Less: Operating expenses Operating income Less: Interest expense Income before income taxes 17,036,000 217,500 Long-term liabilities Total liabilities d. Calculate the rate of return on total assets for 2017. $ 8,798,000 $ 7,864,000 Identify the formula, then calculate the rate of return on total assets. (Round your answer to one decimal place.) ( Net income + Interest expense ) / Average total assets = Rate of return on assets ( $ 14,848,000 + $ 217,500 / $ 18,476,000 = 81.5 16,818,500 1,970,500 Less: Income tax expense Stockholders' equity Common stock, no par $ 14,848,000 Net income Retained earnings 2,508,000 $ 8,039,300 10,547,300 $ 2,000,000 7,742,700 9,742,700 Total stockholders' equity $ Print Done e. Calculate the rate of return on common stockholders' equity for 2017 Identify the formula, then calculate the rate of return on common stockholders' equity. (Round your answer to one decimal place. If an it Net income - Preferred dividends / Average common equity = Rate of return on equity ($ 14,848,000 $ 19,345,300 $ 17,606,700 Total liabilities and equity Print Done Enter any number in the edit fields and then click Check Answer. 1 part I remaining Clear All Final Check 5:10 PM Type here to search o e @ 9 ERIC 1/28/202054

Answer 1

a) Rate of return on equity

(	Net income	-	Preferred dividends	)	/	Average common equity	=	Rate of return equity
(	14848000	-	0	)	/	10145000	=	146.4%