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u200b

Kooper Co.
Income Statement
For the Year Ended December 31, Year 1

Revenues: u200b u200b

Net sales u200b $383,000

Less: Cost of goods sold u200b 121,700

Gross margin u200b $261,300

Less Operating expenses: u200b u200b

Selling expenses $41,500 u200b

Administrative expenses 56,500 u200b

Interest expense 12,000 u200b

Total expenses u200b 100,000

Net income u200b $151,300

Kooper Co.
Balance Sheet
December 31,Year 1

Assets

Current assets: u200b u200b u200b

Cash u200b $53,000 u200b

Accounts receivable u200b 64,300 u200b

Marketable securities u200b 10,500 u200b

Inventory u200b 93,250 u200b

Total current assets u200b u200b $221,050

Property, plant, and equipment: u200b u200b u200b

Store equipment $325,000 u200b u200b

Less Accumulated depreciation 162,100 $162,900 u200b

Office equipment $149,750 u200b u200b

Less Accumulated depreciation 72,750 77,000 u200b

Total property, plant, and equipment u200b u200b 239,900

Total assets u200b u200b $460,950

Liabilities

Current liabilities: u200b u200b u200b

Accounts payable u200b $97,200 u200b

Salaries payable u200b 28,700 u200b

Total current liabilities u200b u200b $125,900

Long-term liabilities: u200b u200b u200b

Note payable (due Year 1) u200b u200b 154,000

Total liabilities u200b u200b $279,900

Stockholders Equity

Total stockholders equity u200b u200b 181,050

Total liabilities and equity u200b u200b $460,950u200b

There were 30,000 shares of common stock outstanding throughout Year 1. Dividends on common stock amounted to $21,000 and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of Year 1. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400 respectively. Total assets at the beginning of the year were $430,500.

Required: Calculate the following ratios:

A. return on sales

B. return on total assets

C. earnings per share

D. price-earnings ratio