Solution-Compute the return on assets and profit margin on

Compute the return on assets and profit margin on sales

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Reference no: EM133059488

Question - Blue Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Blue Inc. operations.

	($000 omitted)
	2021	2020	2019	2018	2017
Sales revenue	$20,160	$15,980	$14,030	$5,980	$4,040
Net income	2,420	1,410	800	710	250
Average total assets	22,210	19,170	11,420	4,160	3,000
Current assets	7,960	5,980	3,000	1,190	990
Working capital	3,570	3,200	1,210	500	400
Common shares:
Number of shares outstanding (000)	2,000	2,000	2,000	20	20
Average market price	$10	$6	$4	-	-

Required - Compute the return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Blue Inc.

Reference no: EM133059488

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Compute the return on assets and profit margin on sales

Reference no: EM133059488

Reference no: EM133059488

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