Win's companies, a home improvement store chain, reported the following summarized figures:

win's companies

income statement

years ended may 31, 2016 and 2015

2016

2015

net sales

$51,200,000

$38,800,000

cost of goods sold

28,400,000

28,600,000

interest expense

500,000

280,000

all other expenses

6,700,000

7,100,000

net income

$15,600,000

$2,820,000

win's companies

balance sheet

may 31, 2016 and 2015

assets

liabilities

2016

2015

2016

2015

cash

$2,400,000

$1,700,000

total current liabilities

$28,000,000

$13,300,000

short-term investments

27,000,000

11,000,000

long-term liabilities

13,200,000

11,400,000

accounts receivable

7,300,000

5,700,000

total liabilities

41,200,000

24,700,000

merchandise inventory

7,300,000

9,700,000

stockholders' equity

other current assets

6,000,000

2,500,000

common stock

11,000,000

11,000,000

total current assets

50,000,000

30,600,000

retained earnings

25,800,000

20,900,000

all other assets

28,000,000

26,000,000

total equity

36,800,000

31,900,000

total assets

$78,000,000

$56,600,000

total liabilities and equity

$78,000,000

$56,600,000

requirement 1. compute the profit margin ratio for win's companies for 2016.

begin by selecting the formula to calculate win's companies' profit margin ratio. then enter the amounts and calculate the profit margin ratio for 2016.

(round your answer to one tenth of a percent, x. x%.)

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=

profit margin ratio

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=

%

requirement 2. compute the rate of return on total assets for 2016.

begin by selecting the formula to calculate win's companies' rate of return on total assets. then enter the amounts and calculate the rate of return on total assets for 2016.

(round your answer to one tenth of a percent, x. x%.)

(

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) /

=

rate of return on total assets

(

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) /

=

%

requirement 3. compute the asset turnover ratio for 2016. begin by selecting the formula to calculate win's

companies' asset turnover ratio. then enter the amounts and calculate the assets turnover ratio for 2016.

(round your answers to two decimal places, x. xx.)

/

=

asset turnover ratio

/

=

requirement 4. compute the rate of return on common stockholders' equity for 62016.

begin by selecting the formula to calculate win's

companies' rate of return on common stockholders' equity. then enter the amounts and calculate the rate of return on commonstockholders' equity for 2016.

(abbreviation used: avg. common se = average commonstockholders' equity. complete all input boxes. enter "0" for balances with a zero value. round your answer to one tenth of apercent, x. x%.)

rate of return on common

(

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=

stockholders' equity

(

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=

%

requirement 5. are these rates of return strong or weak? explain your reasoning. (assume the following industryaverages: profit margin ratio = 22.8%, rate of return on total assets = 10.3%, asset turnover ratio= .54, rate of return on common stockholders' equity = 10.3%.

these rates of return are: 1) average 2) strong or 3) weak

considering that :

1) average companies present much higher rates of return

2)average companies present much lower rates of return

3) average companies present similar rates of return

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average companies present much higher rates of return

average companies present much lower rates of return.

average companies present similar rates of return.