Question

C Pausec Crane Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. Crane Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash $380,000 $417,500 Accounts receivable, net 1,067,600 776,400 Inventory 681,100 717,000 Other current assets 368,000 247,000 Total current assets 2,532,600 2,122,000 Property, plant, & equipment, net 9,275,840 8,409,365 $11,808,440 $10,531,365 Total assets Liabilities and Stockholders'Equity $3,188,000 $2,846,100 Current liabilities 3,892,600 3,702,700 Long-term debt 6,738,700 6,890,700 Total liabilities

Answer 1

The following are profitablity ratios for 2016 a. Grose margin percentage Groge margin net sales - Cost of goods sold Met Sales Percentage & Met sales - 8 10,260,000 - $4996000 x 100 $1026 QOVD in - $5,264,000 x 100 $10,260,000 I Gron margin = 51.3% so L Percentage b. Return on Assets Met Inwone Rehem on Assets = Auerage Total Assas" Allerage total Assets - Beginning of the you Aseet I t of the the youth Assit wo Reole Ha ndle your 910,531,365 +811808, 440 Aurage tobal Asute = $11169902.5

Return on a Assets $ 1468425 $11169902.5 X 100 I Rehom on Assets = 13.1% c. Return on sommon stockholders Equity deridend on preference shock Return on Stornown stockholders Equity - Net Income ne de Allerage Common stockholders Equity & Allorage Common stockholders quity Beginning Common stockholder Equity - Ending common shock holdene equity $103,850 to 197000 Allerage Comfort stakholder's Equity = $150425 $1,468,425 -$29500 - $ 150425 - $ 1A38925 $150425 Rehem on Common na 9.56 ora 9.67. shortholder's equiry casos,