The following condensed information was reported by Peabody Toys, Inc., for 2018 and 2017:($ in thousands)2018 2017Income statement informationNet sales $5,200 $4,200Net income 180 124Balance sheet informationCurrent assets $ 800 $ 750Property, plant, and equipment (net) 1,100 950Total assets $1,900 $1,700Current liabilities $ 600 $ 450Long-term liabilities 750 750Paid-in capital 400 400Retained earnings 150 100Liabilities and shareholders’ equity $1,900 $1,700Required:1. Determine the following ratios for 2018:a. Profit margin on salesb. Return on assetsc. Return on shareholders’ equity2. Determine the amount of dividends paid to shareholders during 2018.This exercise is based on the Peabody Toys, Inc., data from E 4–27.
The following condensed information was reported by Peabody Toys, Inc., for 2018 and 2017:
($ in thousands)
2018 2017
Income statement information
Net sales $5,200 $4,200
Net income 180 124
Balance sheet information
Current assets $ 800 $ 750
Property, plant, and equipment (net) 1,100 950
Total assets $1,900 $1,700
Current liabilities $ 600 $ 450
Long-term liabilities 750 750
Paid-in capital 400 400
Retained earnings 150 100
Liabilities and shareholders’ equity $1,900 $1,700
Required:
1. Determine the following ratios for 2018:
a. Profit margin on sales
b. Return on assets
c. Return on shareholders’ equity
2. Determine the amount of dividends paid to shareholders during 2018.
This exercise is based on the Peabody Toys, Inc., data from E 4–27.
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