Determine the rate of return for the ratios

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Reference no: EM1312459

Calculate the rate of return for the following ratios.

The following information has been taken from the financial statements of the Gaines Company. Gaines Company has only issued common stock.

Net income	$ 70,000
Total assets, January 1, 20X9	500,000
Total liabilities, December 31, 20X9	175,000
Net sales	900,000
Interest expense	20,000
Current assets, December 31, 20X9	150,000
Current liabilities, December 31, 20X9	75,000
Income tax expense	25,000
Total assets, December 31, 20X9	575,000
Stockholders' equity, January 1, 20X9	300,000
Stockholders' equity, December 31, 20X9	400,000
Common shares outstanding for 20X9	100,000

Use the given data for the Gaines Company to calculate the following ratios for 20X9:
a) rate of return on total assets
b) rate of return on common stockholders' equity
c) rate of return on net sales
d) times-interest-earned ratio
e) debt ratio, December 31, 20X9
f) current ratio, December 31, 20X9
g) earnings per share of common stock

Reference no: EM1312459

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