Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter. Computing all the ratios (LO2)

Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter. Computing all the ratios (LO2)


Block-Hirt-Danielsen:
Foundations of Financial Management, 13th Edition II. Financial Analysis and Planning 3. Financial Analysis
Chapter 3 Financial Analysis 85

GOODYEAR CALENDAR COMPANY
Balance Sheet
December 31, 2008

SOLUTION PREVIEW

Profitability Ratios:

1. Profit margin = net income/sales

Profit margin = $168,000/$2,000,000 = 8.40%

 

2. Return on assets (investment) = net income/total assets

Return on assets (investment) = $168,000/$760,000 = 22.1%

 

File name: Goodyear-Calendar-Company.doc File type: application/msword Price: $8