ACC 280 / XACC 280
Axia College of University of Phoenix (UoP)
Principles of Accounting
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
ACC 280 / XACC 280 Solution
Help in ACC 280
Help in XACC 280
Exercise 15-8 (E15-8) Selected comparative statement data for Willingham Products Company are presented on the next page. All balance sheet data are as of December 31.
2009 2008
Net sales $760,000 $720,000
Cost of goods sold 480,000 440,000
Interest expense 7,000 5,000
Net income 50,000 42,000
Accounts receivable 120,000 100,000
Inventory 85,000 75,000
Total assets 580,000 500,000
Total common stockholders’ equity 430,000 325,000
Instructions
Compute the following ratios for 2009.
(a) Profit margin.
(b) Asset turnover.
(c) Return on assets.
(d) Return on common stockholders’ equity.
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