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  3. 17-2 financial ratios the annual reports of milano

17-2 Financial Ratios The annual reports of Milano Italian clothing chain, included the following selected...

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Accounting

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17-2 Financial Ratios The annual reports of Milano Italian clothing chain, included the following selected data (in millions,,the European euro) 20x2 20x0 Annual amounts 65 385 632 295 29 95 515 Net income Gross margin on sales Cost of goods sold Operating expenses Income tax expense Dividends declared and paid 350 165 16 39 End-of-year amounts 220 180 Long-term assets Long-term debt Current liabilities Accounts receivable Merchandise inventory Paid-in capital Retained income 128 211 110 10 During each of the three years, 10 million shares of common stock were outstanding. Assume that all sales were on account and that the applicable market prices per share of stock were 92 for 20X1 and 118 for 20X2. 1 Compute each of the following for each of the last two years, 20xI and 20x2: a) Rate of returm on sales b) Rate of return on stockholders' equity c) Current ratio d) Ratio of total debt to stockholders' equity e) Ratio of current debt to stockholders' equity f Gross profit rate g) Average collection period for accounts receivable h) P/E ratio yout percentage k) Total debt to equity 1) Eamings per share m)Price eanings

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