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Question: exercise 1310 partially correct answer your answer is partially correct...

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Exercise 13-10

Partially correct answer.

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Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here.

All balance sheet data are as of the end of the fiscal year (in millions).

2017 2016

Net sales $5,050   $4,900

Cost of goods sold 3,300 4,201

Net income 65 100

Accounts receivable 75 102

Inventory 1,150   1,250

Total assets 2,850 3,150

Total common stockholders’ equity 900 1,141

Compute the following ratios for 2017. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%)

(a) Profit margin Entry field with correct answer 1.3 %

(b) Asset turnover Entry field with correct answer 1.68 times

(c) Return on assets Entry field with correct answer 2.3 %

(d) Return on common stockholders’ equity Entry field with incorrect answer 1.6 %

(e) Gross profit rate Entry field with correct answer 34.7 %

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