Perrett Corporation Has Provided the Following Financial Data

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The Answer is a.Net profit margin percentage = Net income ÷ Sales= $39,500 ÷ $1,200,000 = 3.3% (rounded)b.Gross margin percentage = Gross margin ÷ Sales= $430,000 ÷ $1,200,000 = 35.8% (rounded)c.Return on total assets = Adjusted net income* ÷ Average total assets**= $53,800 ÷ $1,460,000 = 3.68% (rounded)*Adjusted net income = Net income + [Interest expense × (1 − Tax rate)]= $39,500 + [$22,000 × (1 − 0.35)] = $53,800**Average total assets = ($1,470,000 + $1,450,000) ÷ 2 = $1,460,000d.Return on equity = Net income ÷ Average stockholders' equity*= $39,500 ÷ $937,000 = 4.22% (rounded)*Average stockholders' equity = ($954,000 + $920,000) ÷ 2 = $937,000

Perrett Corporation Has Provided the Following Financial Data

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Perrett Corporation Has Provided the Following Financial Data

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