Selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of December 31:
|
(in million) |
2004 |
2003 |
|
Net sales |
4,873.60
|
5,951.00 |
|
Cost of goods sold |
3,386.60 |
4,323.80
|
|
Net income |
143.30 |
151.90 |
|
Accounts receivable |
74.60 |
60.50
|
|
Inventory |
1,274.60
|
1,526.10 |
|
Total assets |
3,301.50
|
3,301.50
|
|
Total common stockholders’ equity |
1,165.90
|
1,259.70
|
Instructions
Compute the following ratios for 2004:
(a) Profit margin.
(b) Asset turnover.
(c) Return on assets.
(d) Return on common stockholders’ equity.
(e) Gross profit rate.